Business Costs

Lina runs a business producing and marketing children's clothing. Identify two start-up costs:

• Shelves/rails for storing stock

• Sewing machine

• Thread

• Electricity

Lina runs a business producing and marketing children's clothing. Identify two running costs:

• Thread

• Shelves/rails for storing stock

• Sewing machine

• Electricity

Costs which change depending on the number of products made or sold.

• Fixed costs

• Variable costs

If a business has total fixed costs of £ 30,000 when it produces 10,000 units what is the cost per unit?

• £3

• £30

• £30,000

• £3000

If a business has total variable costs of £20,000 when it produces 1,000 units what is the variable cost per unit?

• £2

• £20

• £200

• £20,000

Which TWO of the following are start-up costs for a mobile car valeting business?

• Petrol for the van

• A pressure washer

• Car wash shampoo

• Unifroms for the staff

• Paper for customer receipts

There is no direct link between these costs and the amount sold.

• Variable

• Fixed

Costs relate directly to the amount produced or sold. ​

• Variable

• Fixed

Which costs remain the same regardless of sale?

• Variable (direct)

• Fixed (indirect)

If one unit costs £10 to produce and 50 are produced, calculate the total variable cost

• £50

• £500

• £10