Fixed and Variable Costs

Toal Costs=

• Variable Costs- Fixed Costs

• Fixed Costs - Variable Costs

• Fixed Costs + Variable Costs

• Variable Costs Divided By Fixed Costs

Salary given to permanent staff is an example of which kind of cost

• fixed cost

• variable cost

When planning a monthly budget, why is it important to include both fixed and variable costs?

• To ensure you only focus on fixed costs

• To have a comprehensive view of all financial obligations

• To prioritize variable costs over fixed costs

• To make the budget more complicated

How can you differentiate between fixed and variable costs in your monthly budget?

• Fixed costs change every month, while variable costs remain the same

• Fixed costs are essential, while variable costs are non-essential

• Fixed costs remain constant each month, while variable costs fluctuate

• Fixed costs are paid annually, while variable costs are paid monthly

What reasoning would you use to decide whether to cut a fixed or variable cost to improve your budget?

• Cut fixed costs first, as they are less important

• Evaluate the necessity and impact of each cost on your financial goals

• Cut variable costs without consideration

• Ignore the need to cut costs

Which of the following are considered fixed costs? (There are two answers)

• Rent

• Firm operators' salaries

• Electricity

• Part-time workers' wages

Types of cost in the curve are

• Total, variable and fixed

• Average and marginal

Costs of production that do not change when output changes

• total costs

• marginal costs

• fixed costs

• overhead

Production cost that varies as output changes; labor, energy, raw materials

• variable cost

• marginal cost

• total cost

• fixed costs

Variable cost plus fixed cost; all costs associated with production.

• marginal cost

• total cost

• overhead

• fixed cost