| A | B |
|---|
| Fixed costs | costs which remain the same whatever the level of output |
| Profit | the difference between sales revenue and costs |
| Turnover | the money value of the sale of products by a business |
| Total costs | all the costs incurred by a business |
| Variable costs | costs which vary according to the level of output |
| Break even | where revenue equals costs |
| Break even chart | a graph which shows total costs and total revenues and the break even point where total revenue equals total cost |
| Budget | a forecast of income and expenditure over a period of time |
| Margin of safety | the quantity sold above the break even point where the business makes a profit |
