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WorksheetsBasics of Costs
Total questions: 20
Worksheet time: 7mins
This is the term given to how many products/services a business produces.
Output
Cost
Fixed Cost
Variable cost
The things a business has to pay for in order to start-up and operate on a daily basis.
Output
Costs
Profit
Revenue
Costs that do not change depending on output
Variable costs
Fixed costs
Total costs
Output
These are the costs that change based on output.
Fixed costs
Variable costs
Output
Rent is...
variable cost
fixed cost
total cost
Advertising is...
output
fixed cost
variable cost
Raw materials are...
fixed cost
variable cost
Insurance is...
fixed cost
variable cost
Salaries are...
fixed cost
variable cost
Loan repayment is...
fixed cost
variable cost
Packaging is...
fixed cost
variable cost
Wages are...
fixed cost
variable cost
Utilities are...
fixed cost
variable cost
All the fixed costs added together with all the variable costs.
output
fixed costs
variable costs
total costs
Costs that do not change in the short term, regardless of output are called:
variable costs
fixed costs
average costs
total costs
Costs that change based on the amount of goods and services produced
total costs
fixed costs
variable costs
average costs
Raw materials, packaging, labour costs, are examples of:
fixed costs
variable costs
total costs
profit
Rent, administrative costs, advertising, employee salary are examples of:
costs
total costs
variable costs
fixed costs
Which of the following is NOT a reason why costs are important to a business
to charge right price for the product
to keep the employees motivated
to calculate whether a new business will make profit or not
to help managers to take major decisions
Which one of the following is NOT considered to be a cost?
rent
salary
sales revenue
insurance
