IB Business HL 3.4 Vocab

The direct costs attributable to the production of goods sold by a company, including materials, labor, and manufacturing overhead.

The difference between revenue and the cost of goods sold, representing the profit earned from a company's core business operations before deducting operating expenses.

The costs incurred by a business in order to generate revenue, including overhead costs such as rent, utilities, salaries, and marketing expenses.

The portion of net income that a company retains after paying dividends to shareholders, which is often reinvested into the business for growth or used to pay off debt.

Payments made by a company to its shareholders as a distribution of profits, usually on a regular basis, representing a return on their investment.

Long-term assets held by a company for more than one accounting period, such as property, plant, equipment, and long-term investments.

The systematic allocation of the cost of tangible assets over their useful life, reflecting the decrease in value due to wear and tear, obsolescence, or other factors.

resources a company can sell, use, or convert to cash within a year.

Obligations that are due within one year, such as accounts payable, short

Long-term obligations that are not due within one year, including long-term loans, bonds payable, and deferred tax liabilities

The difference between a company's total assets and total liabilities, representing the company's equity or ownership interest.

The difference between a company's current assets and current liabilities, representing its ability to meet short

The ownership interest in a company, representing shareholders' residual claim on its assets after deducting liabilities.

Non-physical assets with value that is derived from rights and privileges, such as patents, trademarks, copyrights, and goodwill.

The premium paid for acquiring a company above its net tangible assets value, representing the value of its reputation, customer base, and other intangible factors.