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U1 - The Bus Environ - D3 costs

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Some of the expenses a business has to bear in the beginning to get it up and running are called

a)

Start up costs

b)

Fixed costs

c)

Variable costs

d)

Direct costs

e)

Indirect costs

2.

Costs that do not vary with the activity i.e. levels of making a product or providing a service are called

a)

Start up costs

b)

Fixed costs

c)

Variable costs

d)

Direct costs

e)

Indirect costs

3.

Costs that vary with the activity i.e. levels of making a product or providing a service are called

a)

Start up costs

b)

Fixed costs

c)

Variable costs

d)

Direct costs

e)

Indirect costs

4.

Costs that can be linked to a specific product or service in terms of levels of activity are called

a)

Start up costs

b)

Fixed costs

c)

Variable costs

d)

Direct costs

e)

Indirect costs

5.

Costs that can not be linked to a specific product or service in terms of levels of activity are called

a)

Start up costs

b)

Fixed costs

c)

Variable costs

d)

Direct costs

e)

Indirect costs

6.

.........................can be calculated by adding fixed costs and variable costs

a)

Start up costs

b)

Total costs

c)

Direct costs

d)

Indirect costs

7.

.........................can be calculated by adding direct and indirect costs

a)

Start up costs

b)

Variable costs

c)

Fixed costs

d)

Operating costs

8.

Another name for fixed costs could be

a)

Start up costs

b)

Direct costs

c)

Indirect costs

d)

Operating costs

9.

Another name for variable costs could be

a)

Start up costs

b)

Direct costs

c)

Indirect costs

d)

Operating costs

10.

Average cost or average revenue refers to per unit i.e one unit cost or revenue, respectively

a)

True

b)

False