AK Biz Week Vocabulary

4. The difference in the value of products a business has from the beginning of a time period to the end. If the value goes down, that usually means products were sold.
5. Money the business owes to other people or companies. (Basically: bills they haven’t paid yet.)
8. The direct cost of making a product. This includes materials, factory workers’ pay, and equipment maintenance.
10. A financial report that shows what a business owns (assets) and what it owes (liabilities). Both sides must be equal — like a balanced scale.
11. Money the business owes to others, like loans, unpaid bills, or mortgages.
12. The money left after subtracting the cost to make a product from the sales money.
14. A number that shows how the economy is doing. It starts at 100. If it goes up to 106, that means the economy is expected to grow by 6%.

1. Regular business costs that don’t directly make the product. Examples: office staff pay, insurance, electricity, computers. These costs happen even if nothing is being produced.
2. Spreading out the cost of a building or equipment over several years as it wears down or gets older.
3. Money other people or companies owe the business. (Basically: customers who haven’t paid yet.)
6. Spreading out the cost of something expensive over several years instead of counting it all at once.
7. Things a business owns that have value. This can be cash, buildings, equipment, products to sell, or money customers still owe them.
9. The percent of total sales in an industry that belongs to your business. If 10 companies are competing equally, each would have about 10%.
13. The total cost to make a product. This includes materials, worker pay, and utilities used to produce it.