Consumer surplus is the difference between the price consumers pay for commodities and the price they would be willing to pay. A positive consumer surplus is the benefit enjoyed by consumers when they pay the price lower than they would be willing to pay for a good or service. A negative consumer surplus is the loss of value to consumers when they pay a higher price than they would be willing to pay. Consumer surplus measures the satisfaction of the consumer getting value for their money by purchasing a product.

Depreciation is the decrease in value of an item with time as a result of wear and tear or becoming obsolete. It is significant in estimating the value of old and used items, for example, motor vehicles.

Break-even analysis considers the sales level at which the total cost of production gets covered while sensitivity analysis involves identifying uncertainties and allocating them to different sources. Break-even analysis enables firms to establish the sales level at which they would make a profit. Break-even analysis uses models to identify significant factors that affect the profitability of a project, for example, the operating costs.