Business Costs Quiz

What are start-up costs?

• Costs incurred when setting up the business, likely a one-time cost.

• Costs incurred in the day-to-day running of a business, paid often.

• Costs related to marketing and advertising.

• Costs associated with employee salaries.

What are operating or running costs?

• Costs incurred when setting up the business, likely a one-time cost.

• Costs incurred in the day-to-day running of a business, paid often.

• Costs related to purchasing equipment.

• Costs associated with legal fees.

Which of the following is a tax imposed on the profits of a corporation?

• Business rates

• Rent

• Corporation tax

• Income tax

What is the term for the amount paid periodically by a tenant to a landlord for the use of premises?

• Business rates

• Rent

• Corporation tax

• Mortgage

Which term refers to the local tax paid by businesses to help fund local services?

• Business rates

• Rent

• Corporation tax

• Sales tax

Which of the following is a fixed cost for a business?

• Raw materials

• Utility bills

• Rent

• Sales commission

Which of the following is considered a variable cost for a business?

• Property tax

• Insurance premiums

• Raw materials

• Rent

Which of the following is a start-up cost?

• Premises

• Ingredients

• Raw Materials

• Packaging

What is the term for expenses that vary directly with the level of production or sales?

• Variable costs

• Fixed costs

• Operating costs

• Start-up costs

Which of the following is an example of a direct cost?

• Insurance premiums

• Raw materials

• Office rent

• Utility bills