Glossary Third Term

Variable cost: The price it costs to make certain goods and services based on the quantity, inputs, equipment and labor used for a given production. (GOCARDLESS, s.f.)

Fixed cost: It’s the price that, unlike the variable cost, always be permanent in determined in the company and that will never vary and do not affect production. (bdc, s.f.)

Expenses: Are all those outflows that must be spent for the optimal functioning of a certain company. (CFI Education Inc, 2021)

Break-even: It’s a tool in the economy that allows to determine the number of products that companies require to not obtain a loss or gain at the time of selling goods and services. In general, it’s used to establish or project whether the operation of the company is viable the operation of the company. The fixed, variable costs and selling price of the product are taken into account. (CFI Education Inc, 2021)

Job offer: Is the number of people who offer labor services to companies. (Doyle, 2020)

Revenue effect: This effect explains the behavior of families according to monthly income when buying goods and services. Phenomena are studied by the Cialis supply and demand may vary.  (AmosWEB, 2021)

Ceteris paribus: Term in economics that is used to express within an economic model that only one variable compared to the others, doesn’t remain constant, so there will be a change in the price or demand for the product. (GOCARDLESS, s.f.)

Substitution effect: Explains the decisions of families when the prices of a certain good or service decrease. (Britannica, s.f.)

Depreciation: Value that is assigned to a certain good of a company when it has been used. It will represent a lower value compared to that of the factory due to the time of use and its condition of functionality. (CFI Education Inc, 2021)

Sale price: It’s understood as the value at which a certain good or service will be sold. To do this, the price must be taken into account in relation to cost, utility, the units required, what value the customer will be paying, in what place and the prices of this good or service in the market, in order to be able to be competitive and make a profit. (AccountingTools, 2021) 

References

AccountingTools. (2021). Sale price definition. Recuperado de What is a Sale

          Price?- https://www.accountingtools.com/articles/2017/5/16/sale-price

AmosWEB. (2021). REVENUE EFFECT. Recuperado de

          https://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=revenu+effect

Bdc. (s.f.). Fixed costs. Recuperado de https://www.bdc.ca/en/articles-

          tools/entrepreneur-toolkit/templates-business-guides/glossary/fixed-costs

Britannica. (s.f.). substitution effect. Recuperado de economics:

          https://www.britannica.com/topic/substitution-effect

CFI Education Inc. (2021). What are the Main Types of Depreciation Methods?

Recuperado de https://corporatefinanceinstitute.com/resources/knowledg e/accounting/types-depreciation-methods/

CFI Education Inc. (2021). What is an Expense? Recuperado de

https://corporatefinanceinstitute.com/resources/knowledge/accounting/expenses/

CFI Education Inc. (2021). What is Break Even Analysis? Recuperado de

https://corporatefinanceinstitute.com/resources/knowledge/modeling/break-even-analysis/

Doyle, A. (2020). What Is Included in a Job Offer Letter (With Samples).

Recuperado de https://www.thebalancecareers.com/job-offer-letter-2061695

GOCARDLESS. (s.f.). Variable cost: definition, formula and examples.

          Recuperado de https://gocardless.com/guides/posts/what-is-variable-cost/

GOCARDLESS. (s.f.). What does ceteris paribus mean? Recuperado de

          https://gocardless.com/guides/posts/what-does-ceteris-paribus-mean/