Finance Business Terms

9 months ago   •   .2 min read

.By İlayda Birol
.Table of contents

Accounts payable

A record of the money you owe to those who helped make your product or service possible.

Accounts receivable

A record of how much other people and businesses owe you.

Capital

Capital can refer to money, but it also refers to the physical items that a business owns and uses.(e.g., equipment, vehicles, buildings, land, etc.).

Deliverable

A product, service or idea that is developed by a business.

Fixed costs

Expenses that you must pay regardless of whether your business is doing well. Utilities, rent, and employee salaries are all examples of fixed costs.

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Gross

Gross refers to the total amount, before deductions have been made.

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Incentivise

Offer a reward to encourage customers to try your product or service.


Margin

Margin is the difference between the price a product is sold for and the costs spent to make and sell the product.


Monetise

Generate income from a product or service.

Net

After deductions and expenses, net refers to the remaining money or assets.


ROI

The return on investment (ROI) is the profit or other benefits received from an investment, compared to what was spent.


Variable costs

Variable costs are expenses that change based on the number of units produced. They can include: shipping; commissions paid to sales representatives, distributors or other intermediaries; supplies used up in production such as paper and ink cartridges for printers.

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