L2 Business A1

What is the definition of a start up cost?

• Money spent on a regular basis to keep business running

• Total amount of money spent running a business

• The amount of money spent setting up a business before trading

• Money paid into a business through trade

What is the definition of operating costs?

• Money spent on a regular basis to keep business running

• Total amount of money spent running a business

• The amount of money spent setting up a business before trading

• Money paid into a business through trade

Which of the following is an example of a start up costs?

• Refreshing stock levels once sold out

• Fuel

• Electric

• Buying equipment or machinery

Which of the following is an example of a operating cost?

• Tools

• Buying a van

• Fuel for a van

• Buying property

What is a fixed cost?

• Costs that vary depending on how many items you have sold

• Spending on items where the price does not change depending on trade

• Total amount of money spent on the business

What is a variable cost?

• Costs that vary depending on how many items you have sold

• Spending on items where the price does not change depending on trade

• Total amount of money spent on the business

A fixed costs is also a ____ cost?

• Direct

• Indirect

A variable cost is also a ____ cost?

• Direct

• Indirect

What is the definition of a total cost?

• Money spent on a regular basis to keep business running

• Total amount of money spent running a business

• The amount of money spent setting up a business before trading

• The overall or total amount of money spent running the business

What is the formula for total costs?

• Fixed Costs + Variable Costs

• Fixed Costs - Variable Costs

• Fixed Costs X Variable Costs