Pricing and Financial Foundations flashcards

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What is meant by “Price” in this lesson?Pricing and Value: Price is the amount charged under the transaction's terms.
What is meant by “Willingness to pay” in this lesson?Pricing and Value: Willingness to pay is a customer's maximum acceptable payment in a specified context.
What is meant by “Cost-based pricing” in this lesson?Pricing and Value: Cost-based pricing starts from defined costs and adds a markup or target.
What is meant by “Value-based pricing” in this lesson?Pricing and Value: Value-based pricing considers perceived customer benefits and alternatives.
What is meant by “Price elasticity” in this lesson?Pricing and Value: Elasticity measures purchase responsiveness to price changes under a defined method.
What is meant by “Pricing fairness” in this lesson?Pricing and Value: Fairness examines transparency and treatment of customers alongside commercial goals.
What is meant by “Revenue” in this lesson?Costs, Contribution, and Break-Even: Revenue is income from business activity under the stated accounting basis.
What is meant by “Fixed cost” in this lesson?Costs, Contribution, and Break-Even: A fixed cost stays unchanged across the specified activity range and period.
What is meant by “Variable cost” in this lesson?Costs, Contribution, and Break-Even: A variable cost changes with the amount of activity.
What is meant by “Contribution margin” in this lesson?Costs, Contribution, and Break-Even: Contribution margin is sales minus variable costs under the defined measure.
What is meant by “Break-even” in this lesson?Costs, Contribution, and Break-Even: Break-even occurs when relevant total revenue equals relevant total cost.
What is meant by “Profit” in this lesson?Costs, Contribution, and Break-Even: Profit is revenue minus the relevant total costs.
What is meant by “Income statement” in this lesson?Understanding Financial Statements: An income statement summarizes income and expenses over a period.
What is meant by “Balance sheet” in this lesson?Understanding Financial Statements: A balance sheet reports assets, liabilities, and equity at a date.
What is meant by “Cash-flow statement” in this lesson?Understanding Financial Statements: A cash-flow statement reports cash movements across classified activities over a period.
What is meant by “Asset” in this lesson?Understanding Financial Statements: An asset is a controlled economic resource under the applicable accounting definition.
What is meant by “Liability” in this lesson?Understanding Financial Statements: A liability is an obligation under the applicable accounting definition.
What is meant by “Equity” in this lesson?Understanding Financial Statements: Equity is the residual interest after liabilities are deducted from assets under the accounting framework.