Business costs

Costs that remain the same regardless of how many products a business produces

• Fixed costs

• Variable costs

• Total cost

• Average cost

Combination of all fixed and variable costs

• Fixed costs

• Variable costs

• Total costs

• Average costs

Costs that change based on how much of a product is used or produced

• Fixed costs

• Variable costs

• Total costs

• Average cost

the total cost of production divided by total output.

• Fixed costs

• Variable cost

• Total cost

• Average cost

What kind of cost is the price of raw materials?

• Fixed costs

• Variable costs

• Total cost

• Average cost

What kind of cost do salaries belong?

• fixed

• variable

• total

• average

If the sales revenue is higher than the total costs, the business is making...

• profit

• loss

Calculate the total costs: internet - 600 AED, insurance - 2000 AED, salaries - 50 000 AED

• 75 000 AED

• 42 500 AED

• 52 600 AED

• 6 000 AED

Variable cost per unit = Total variable cost : number of units

• True

• False

Calculate the total cost. Total variable cost = 24 000 AED, total fixed costs = 10 000 AED

• 0

• 24 000 AED

• 14 000 AED

• 34 000 AED