Midterms Quiz No. 1_Costs

The things a business has to pay for in order to start-up and operate on a daily basis.

• Output

• Costs

• Profit

• Revenue

These are the costs that change based on output.

• Fixed costs

• Variable costs

• Output

Raw materials are...

• fixed cost

• variable cost

This is the term given to how many products/services a business produces.

• Output

• Cost

• Fixed Cost

• Variable cost

Costs that do not change depending on output

• Variable costs

• Fixed costs

• Total costs

• Output

Rent is...

• variable cost

• fixed cost

• total cost

Utilities are...

• fixed cost

• variable cost

Advertising is...

• output

• fixed cost

• variable cost

Insurance is...

• fixed cost

• variable cost

Salaries are...

• fixed cost

• variable cost