Finance Terms (Income)

Expenses
Money spent to operate the business
Fixed Costs
Expenses that do not change regardless of how much is produced (e.g., rent, salaries).
Variable Costs
Expenses that change based on production levels (e.g., materials, shipping).
Cost of Goods Sold (COGS)
The direct costs associated with producing a product or delivering a service.
Overhead
Ongoing business expenses not directly tied to production (e.g., utilities, office supplies).
Operating Expenses
Day-to-day costs required to run the business (e.g., marketing, insurance, utilities).