WorksheetsTotal costs
Total questions: 20
Worksheet time: 10mins
(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?
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
If fixed costs are £300 and Variable costs for making one sandwich are 50p, how would you work out total costs for 200 sandwiches?
200 x 300 x 0.50 = Total Sales
300 + 0.5 X 200 = Total Sales
200 + 0.5 x 300 = Total Sales
300 x 50 + 200 = Total Sales
Salaries are...
fixed cost
variable cost
Packaging is...
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
The formula for total costs is:
fixed costs+variable costs= total costs
output+fixed costs=total costs
output+variable costs=total costs
