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Worksheets

Types of Costs

Total questions: 18

Worksheet time: 9mins

Name
Class
Date
1.

The total costs are calculated as the sum of the (a)   costs and the variable costs.

2.

(a)   costs don't vary as the business changes its output

3.

(a)   costs change directly with output.

4.

Fixed or Variable?

Wages paid for factory labour?

a)

Fixed

b)

Variable

5.

Fixed or Variable?

Raw materials

a)

Fixed

b)

Variable

6.

Fixed or Variable?

Transport costs

a)

Fixed

b)

Variable

7.

Fixed or Variable?

Office rent

a)

Fixed

b)

Variable

8.

Fixed or Variable?

Insurance

a)

Fixed

b)

Variable

9.

Fixed or Variable?

Salaries

a)

Fixed

b)

Variable

10.

A loan payment is a fixed expense.

a)

True

b)

False

11.

Dara makes bracelets and sells them in her shop. Which are fixed expenses for Dara’s business?

a)

the cost of the beads

b)

the cost of the string

c)

the cost of advertising

d)

rent for her shop

12.

If Sam's Sandwiches use 25p of material for each sandwich, what will be their variable costs for 10 sandwiches

a)

10 x 0.25 = £2.50

b)

2.5 x 10 = £25

c)

25 x 10 = £250

d)

0.25/10 = 2.5p

13.
Number of Products produced / sold is also referred to as...
a)
Output
b)
Revenue
c)
Costs
d)
items
14.

Materials used to produce goods are an example of ___.

a)

Fixed Costs

b)

Variable Costs

15.

Total Revenue = $50,000

Total Cost = $35,000

Which statement is correct?

a)

The business made a loss of $15,000.

b)

The business made a profit of $15,000.

c)

The business made a profit of $85,000.

d)

The business made a loss of $85,000.

16.

A ___ is made when total revenue is greater than total cost.

a)

Profit

b)

Loss

c)

Fixed Cost

d)

Variable Cost

17.

A ___ is made when total revenue is less than total cost.

a)

Profit

b)

Loss

c)

Fixed Cost

d)

Variable Cost

18.

A business that wishes to make a profit will strive to ___ revenue and ___ costs.

a)

minimise, maximise

b)

minimise, minimise

c)

maximise, maximise

d)

maximise, minimise