Business Costs, Raising Finance for a small business, Cash Flow Business Costs

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The main ways in which a business needs to manage its costs are as follows:

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Classification of costs

Variance analysis

Break even analysis

An opportunity cost

Fixed and variable costs

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• The financial benefit forgone of the next best alternative use of money.

• To see if the business is keeping control of its costs.

• Costs that do(n't) change with the level of output

• Tells a business what it needs to sell to cover its costs.

• Fixed and variable, direct and indirect.


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