Types of Costs Quiz

What are Direct Costs?

• “A direct cost is a price that can be completely attributed to the production of specific goods or services”.

• "A direct cost is when a company occurs a penalty for not adhering to trade laws".

• "A direct cost is an incurred cost when a company has to invest in their workforce."

• "A direct cost is a companies overheads such as rent".

Which of these is an Indirect Cost?

• Raw Materials

• Energy

• Overheads

• Rent

What is a Variable Cost?

• "A variable cost is a cost that stays the same no matter how productive the company is"

• "A variable cost is a price that can be completely attributed to the production of specific goods or services”

• “A variable cost is a corporate expense that changes in proportion with production output."

• "A variable cost is how much a company pays in rent".

An example of a "Fixed Cost" is?

• Donuts

• Rent

• Overheads

• Pizza

What team is going to win the Premier League this year?

• Arsenal

• Aston Villa

• Manchester City

• Liverpool