Business math

Business math

Grade 11

Multiple Choice

What are the items that require maintenance?

• Books

• Food items

• Bicycle, Clothing and cars

• None of these

Chapter 9.6: Operating and Maintaining a Vehicle

Pages 354-356

Objectives

• Interpret variable costs of a vehicle

• Differentiate between variable costs and fixed costs

• Evaluate the depreciation and cost per mile

Information

Although the media focuses a significant amount of attention on gasoline prices, operating and maintaining a vehicle involves numerous costs. They can be classified as variable costs and fixed costs. Variable costs increase as the number of miles driven increases. They include the cost of gasoline, oil, filters, tires, and repairs.

Open Ended

What is meant by Variable cost?

Give examples of variable cost.

Multiple Choice

How do variable costs increase with the increase in miles?

• the cost decreases

• you use more of the vehicle

• you use less of fuel

• you use more of fuel

Multiple Choice

_________ increase as the number of miles driven increase

• Cost per mile

• Fixed costs

• Variable costs

• Depreciation

Refer to the website

https://www.mburse.com/blog/fixed-costs-vs.-variable-costs-and-your-vehicle-program

Multiple Choice

_________ remain about the same regardless of how many miles you drive.

• Maintenance expense

• Variable cost

• Fixed costs

• operating costs

Open Ended

What is the difference between fixed and variable costs?

Open Ended

Why are fixed costs not dependent on the miles driven?

Watch video

https://study.com/academy/lesson/how-to-calculate-depreciation-expense-definition-formula.html

Formula

Depreciation= Purchase Price- Today's Value/ Number of years owned

Cost per mile= Annual Variable cost+Annual Fixed cost/ Number of miles

Open Ended

Explain depreciation and cost per mile.

Multiple Choice

Cost per mile

• cost over the miles travelled

• cost and miles over the depreciation

• more miles driven more cost

Open Ended

Give the main points of the lesson