Fixed vs Variable

What is a Fixed Cost?

• Stays the same based on sales

• Changes based on sales

• none

• Money left after the cost of goods are paid

What is Variable Cost?

• none

• Cost changes based on sales

• Costs stays the same based on sales

• none of the above

What is the formula to Gross Profit?

• xy=mx+b

• Revenue - Cost of goods= Gross Profit

• Revenue + Cost of goods = Gross Profit

• none of the above

When your selling a product the selling price must be more than total to make a profit

• True

• False

Variable cost stays the same based on sales

• True

• False

What are Operating Costs?

• change with production

• Day-to-day expenses of running a Business

• no change with production

• none of the above

As costs go up or down, profits fluctuate as well

• True

• False

When costs go up or down and profits fluctuate, if there is higher costs, are profits lower or higher?

• Lower

• Higher

When costs go up or down and profits fluctuate, if there is lower costs, are profits lower or higher?

• Lower

• Higher

What does Gross Profit tell you?

• Variable Costs

• FIxed Costs

• none of the above

• How well a business can control its costs