Batch-level activities refer to tasks or processes that are performed each time a batch of units is produced, regardless of the number of units within that batch. These activities are essential for economies of production, particularly in manufacturing settings.
Development costs refer to expenses associated with the creation and launch of new products or services. This includes the research, testing, design, and other activities necessary to bring an idea to market.
Diseconomies refer to costs resulting from an economic process that are not borne by those directly involved in the process, often leading to negative externalities. Pollution is a common example where the polluters do not bear the resultant costs.
Expenditure refers to the costs or expenses incurred by an organization. These may be capital expenditure or revenue expenditure. It encompasses both the outlay of money and the acknowledgment of liabilities.
The matching principle is a fundamental accounting concept that dictates pairing revenues with the costs that were incurred to generate those revenues. This ensures that a company's financial statements reflect a more accurate picture of its financial performance.
The analysis of economic behavior at the level of individual market participants, mainly individual firms or consumers.
A Profit and Loss Statement (P&L) summarizes the revenues, costs, and expenses incurred by a company during an accounting period, offering a comprehensive view of its financial performance. Also known as an Income Statement, operating statement, statement of profit and loss, or income and expense statement.
Profit margin measures the profitability of a single transaction or set of transactions by calculating the excess of sales revenue over the costs incurred in providing the goods or services sold. It is also a measure of the surplus of net assets over a period, taking into account capital injections or withdrawals by proprietors.
