Fixed and Running Costs

Buildings and storage is a type of

• Fixed cost
• Running cost
• Asset

Machinery repairs are a type of

• Running cost
• Fixed cost

Original Cost - Resale or trade in Number of years the machine is kept is what type of calculation method?

• Straight line method
• Diminishing balances

High cost category machines are

• Machines that were very expensive to buy
• Machines that are needed every day
• Machines that require a lot of maintenance

Define:- Depreciation

• a reduction in the value of an asset over time, due in particular to wear and tear.
• An increase in value i.e an upward trend in classic tractors

If a cost fluctuates within an external environment this is a

• Running Cost
• Fixed cost

Infrequently used machines are defined as:-

• Low cost
• High cost
• Irrelevant to a cost analysis

Name three types of calculating depreciation

• Straight line method Diminishing or decreasing balances & Sum of digits
• Straight line method, decreasing balances & adding up costs
• Sum of digits method, decreasing balances and resale and trade in costs 

Define:- Resale value

• The value that is left when you are ready to sell
• How much a dealer can sell it for once they have bought it off you
• The money that is left on finance

Fuel is an example of a

• Running cost
• Fixed cost