AP®︎ Business with Personal Finance: Topic 3.4 Flashcards

One-time expenditures plus initial expenses associated with launching a new business or product

Launch costs not expected to recur during normal operations, such as legal, incorporation, initial licensing, and certain equipment costs

Early payments for expense categories that continue after launch, such as occupancy, marketing, insurance, and inventory-related costs

Costs repeatedly incurred as a business produces goods, delivers services, markets offerings, and operates

Recurring costs tied to producing or delivering specific goods or services

Costs of running the business that are not tied directly to producing or delivering a specific good or service

A goods producer’s direct costs, typically including raw materials, production supplies, production labor, and manufacturing-facility costs

A service provider’s direct costs, commonly including direct labor, service-related travel, and materials used to deliver the service

Recurring expenses whose total does not change with the production or service level within the period considered

Recurring expenses that increase as production or service levels increase and decrease as those levels decrease

Coverage purchased through premiums to reduce financial losses from specified accidents, injuries, or property damage