9. Costs. Match the terms and definitions.

1.

direct costs

a)

all expenses incurred by the manufacturer in the production of goods and services

2.

fixed costs

b)

expenses incurred in the day-by-day running of a company

3.

indirect costs

c)

costs that include both fixed and variable costs in the reckoning

4.

labour costs

d)

costs of materials, items or activities that are directly involved in the production of goods, and without which these goods could not be produced in the short run

5.

manufacturing or production costs

e)

costs already ascribed to a project, that will not be clawed back if the company decides to abort a project

6.

operating or running costs

f)

expenses incurred in production, that vary depending on output

7

semi-variable or stepped costs

g)

expenses incurred in providing labour in the production process, can include not only wages and salaries, but also National Insurance contributions and contributions to pension schemes

8. skunk costs (US)

h)

costs of items or activities, such as maintenance of buildings and machinery, which are not used in the production of goods, not immediately necessary for their production

9.

supplementary costs or overheads

i)

costs that do not vary with short-term changes in the level of output (such as heating costs or rates)

10.

variable costs

j)

the indirect costs of a business, which will include labour and material costs

I.

When one company joins another to form a larger single company, the new company is the result of a _______

a) bottom line

2.

When one company buys a majority of the shares of another, and so gains control, it has carried out a ______

b) re-deployment

3.

When the shares of this second company are bought quietly, without publicity, and usually in the shortest possible time, the first company has carried out a ________

c) management buyout

4.

The _______will try to negotiate good conditions for their members in the new company.

d) redundancies

5.

When a company is deciding whether to take over or to merge with another it will examine the accounts very carefully, paying particular attention to the______ , which shows whether or not the company is profitable, and bv how much.

e) early retirement

6.

Knowledge that a takeover is likely usually sends_______ up.

f) trade union

7.

Sometimes, in an attempt to avoid takeover, senior staff will attempt a _______.

g) dawn raid

8

There are usually a number of _______ after a merger or takeover.

h) share price

9.

As many staff as possible will undergo ____ and be kept on in the new company.

i) merger

10.

Members of staff who do not wish to remain and work in the new company may take the option of_____, perhaps with a reduced pension.

j) takeover