#031 4.05 Operating Costs Quizizz

Which of the following is a true statement regarding operating costs:

• They are fixed expenses

• They are not directly related to production.

• Only some businesses have them.

• They occur once or twice a year.

Operating costs are the opposite of

• utilities.

• variable expenses.

•   fixed expenses.

• capital expenditures.

Operating costs that do not increase or decrease with changes in production are called __________ expenses.

• variable

• mixed

• semi-variable

• fixed

A business’s rent or mortgage is a __________ expense

•   semi-fixed

•  fixed

• variable

• semi-variable

Operating costs that fluctuate with changes in production are called __________ expenses.

• total

• capital

• variable

   

• fixed

   

Sales commissions are a __________ expense.

• one-time

• variable

   

•   capital

• fixed

Which of the following is a true statement regarding operating costs:

• Businesses spend more on operating costs than production costs.

   

• Purchasing a piece of equipment is an operating cost.

•   They are usually divided into selling expenses and manufacturing expenses.

• Some may be considered either fixed or variable

Most businesses’ approach to operating costs is to

• keep them as low as possible

   

•   focus on variable expenses rather than fixed ones.

•   eliminate them completely.

• spare no expense on quality.

The sum of the operating and direct expenses required to make a product is its

•   breakeven point.

•   gross cost.

•   total cost.

• price markup.

A price markup is the difference between how much it costs to make a product and

• .

    the company’s gross profit.

• how much employees make

•   what was estimated in the budget.

• its selling price.