ESB Domain 4 Lesson 2

fixed costs remain the same no matter the volume of _________________

variable costs ____________ depending on production.

A ___________ is used to identify the amount of cash a company is spending every month.

A __________________ is used to make projections about a company's future performance.

Return on investment (ROI) is used by businesses to show them how much their ___________ is earning.

FOI gives business owners a way to calculate whether their product or service is ______________ or if they need to make adjustments.

Gary is opening a restaurant. Determine whether his cost are fixed or variable.

• Variable

• Credit card bill

• Varible

• Takeaway boxes

• Variable

• Ingredients

• Fixed

• Rent

Bryan owns a clothing store. Determine whether his costs are fixed or variable.

• Fixed

• Internet bill

• Fixed

• Employees' salaries

• Variable

• Clothes

• Fixed

• Insurance

What are variable expenses?

• Expenses that stay the SAME each week, month, year.

• Expenses that CHANGE each week, month, year.

What are fixed expenses?

• Expenses that stay the SAME each week, month, year.

• Expenses that CHANGE each week, month, year.