| A | B |
|---|
| Operating costs | The ongoing, day-to-day expenses of running a business that are not directly related to production |
| Price markup | The difference between the total cost of a product and its selling price |
| Price-based costing | A pricing method in which the business determines how much customers will pay for a product, then adjusts costs accordingly |
| Sales commission | An amount a salesperson earns per sale, either a percentage or a flat rate |
| Semi-fixed costs | Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-variable costs |
| Semi-variable costs | Expenses that are fixed until the company reaches a certain level of production, then become variable; also called mixed costs or semi-fixed costs |
| Total cost | The sum of the overhead and direct costs required to make a product |
| Variable expenses | Operating costs that fluctuate with changes in production |
