Running and Start-up Costs

What is a cost?

• Something the company receives

• The price of a product

• Something the company must pay

• Something the company sells

Buildings and storage are types of

• Fixed cost

• Running cost

• Asset

Machinery repairs are a type of

• Running cost
• Fixed cost

If a cost fluctuates within an external environment this is a

• Running Cost
• Fixed cost

Which cost is Fixed?

• Sandwiches

• Ingredients

• Utilities

• Stock

What is a variable cost?

• A cost which does not change

• A cost which they must pay even if they produce nothing

• A cost which changes the more or less the business produces

• A cost the business pays when they start

A loan payment is a fixed expense.

• True

• False

Dara makes bracelets and sells them in her shop. Which is a fixed expense for Dara’s business?

• the cost of the beads

• the cost of the string

• the cost of advertising

• rent for her shop

Rent Payment

• Fixed Expense
• Variable Expense

Car Repair

• Fixed Expense
• Variable Expense