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WorksheetsFixed and Variable Costs
Total questions: 20
Worksheet time: 13mins
(a) are all of the expenses that a business incurs (pays).
The total costs are calculated as the sum of the (a) costs and the variable costs.
(a) costs don't vary as the business changes its output
(a) costs change directly with output.
Fixed or Variable?
Wages paid for factory labour?
Fixed
Variable
Fixed or Variable?
Raw materials
Fixed
Variable
Fixed or Variable?
Transport costs
Fixed
Variable
Fixed or Variable?
Office rent
Fixed
Variable
Fixed or Variable?
Insurance
Fixed
Variable
Fixed or Variable?
Salaries
Fixed
Variable
A loan payment is a fixed expense.
True
False
Dara makes bracelets and sells them in her shop. Which is a fixed expense for Dara’s business?
the cost of the beads
the cost of the string
the cost of advertising
rent for her shop
What is a cost?
Something the company receives
The price of a product
Something the company must pay
Something the company sells
If Sam's Sandwiches use 25p of material for each sandwich, what will be their variable costs for 10 sandwiches
10 x 0.25 = £2.50
2.5 x 10 = £25
25 x 10 = £250
0.25/10 = 2.5p
How confident are you in identifying Fixed and Variable costs now?
Extremely confident
Confident
Not very Confident
I still don't get it at all
