Business Quiz for Grade 3 Students

What is a fixed cost? Choose the correct answer: a) A cost that changes with the level of production b) A cost that remains constant regardless of the level of production c) A cost that is incurred in the past

• d) A cost that is determined by the weather

• b

• a) A cost that changes with the color of the sky

• c) A cost that only applies on weekends

Which of the following is an example of a fixed cost? Choose the correct answer: a) Electricity bill b) Cost of raw materials c) Wages of part-time employees

• c) Wages of full-time employees

• d) Marketing expenses

• a) Electricity bill

• b) Cost of raw materials

True or False: Rent for a store is an example of a fixed cost.

• Sometimes

• Maybe

• False

• True

What are examples of variable costs? Choose the correct answers: a) Cost of raw materials b) Wages of full-time employees c) Packaging expenses

• a) Cost of raw materials c) Packaging expenses

• b) Cost of advertising

• d) Rent for the office space

• e) Salary of the CEO

Which of the following is an example of a variable cost? Choose the correct answer: a) Property taxes b) Advertising expenses c) Cost of goods sold

• c) Cost of goods sold

• b) Employee salaries

• d) Rent for office space

• a) Property maintenance

True or False: The cost of packaging materials is a variable cost.

• True

• False

• Maybe

• Not sure

Explain what a sunk cost is in your own words.

• A sunk cost is a cost that has no impact on the business

• A sunk cost is a cost that has already been incurred and cannot be recovered.

• A sunk cost is a cost that will be incurred in the future

• A sunk cost is a cost that can be easily recovered

How can recognizing sunk costs help in making better business decisions? Choose the correct answer: a) By considering only future costs b) By ignoring past costs c) By making decisions based on the total costs incurred

• a) By considering only future costs

• d) By focusing on irrelevant costs

• c) By making decisions based on the total costs incurred

• b) By ignoring past costs

True or False: Sunk costs should be considered when making future business decisions.

• True

• Only on weekends

• False

• Sometimes

In what way can recognizing sunk costs impact a business decision? Choose the correct answer: a) It can lead to better decision-making b) It can lead to higher profits c) It can lead to increased investment

• c) It can lead to downsizing

• a) It can lead to better decision-making

• d) It can lead to legal issues

• b) It can lead to bankruptcy