Understanding Expenditure Types Quiz

Which of the following is a fixed expense that must be paid every month?

• Raw materials

• Monthly office rent

• Electricity bill

• Wages for temporary staff

Which of the following best describes variable expenditure?

• Costs that stay the same no matter the output

• Costs that change with output

• One-off payments for equipment

• Annual insurance premiums

Which of these is a capital expenditure?

• Purchase of a delivery van

• Monthly internet bill

• Office stationery

• Staff salaries

Which of the following best describes revenue expenditure?

• Money spent on long-term assets

• Money spent on daily business operations

• Money invested in shares

• Money from sales

Which of these is NOT a fixed expense?

• Business rates

• Loan repayments

• Cost of raw materials

• Annual insurance premium

Buying a new computer for an office is an example of:

• Revenue expenditure

• Variable expenditure

• Capital expenditure

• Fixed expenditure

Which of these is a revenue expenditure?

• Buying a new oven

• Paying for flour and sugar

• Purchasing the building

• Buying delivery vehicles

Alexander and Anaya pay £500 every month for their warehouse, regardless of sales. This is an example of:

• Variable expenditure

• Fixed expenditure

• Capital expenditure

• Revenue income

Which of the following is an example of capital expenditure?

• Regular utility payments

• Spending on long-lasting assets

• Payments for restocking

• Staff wages

Which of the following is NOT a revenue expenditure?

• Repairs to machinery

• Purchase of office supplies

• Buying a new delivery lorry

• Payment of electricity bill