Cost of Production

You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...

• fixed cost

• variable cost

Which of these are costs?

• fixed

• variable

• operating

• revenue

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...

• fixed cost

• variable cost

Which of the following is the best definition of costs?

• The total amount of income a business makes from selling products or services.

• The amount of money a business has left over after paying for materials.

• The total amount of money a business spends.

How much profit was made?

Buy a toy for RF 100. Sell it for 400.

• RF 200

• RF 300

• RF 400

• RF 500

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total cost?

• $25

• $225

• $375

• $750

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total revenue?

• $25

• $225

• $375

• $750

If you own a home, you must pay for electricity you use. The amount you pay changes every month depending on how much you use. This is an example of a...

• fixed cost

• variable cost

Which of the following is the best definition of profit?

• The total amount of income a business makes from selling products or services

• The amount of money a business has left over after paying for their costs.

• The total amount of money a business spends.

Which of the following is the best definition of revenue?

• The total amount of income a business makes from selling products or services

• The amount of money a business has left over after paying for their costs.

• The total amount of money a business spends.

• The amount of money a business loses every month.