Total costs

__________are all of the expenses that a business incurs (pays).

The total costs are calculated as the sum of the ________ costs and the variable costs.

____ costs don't vary as the business changes its output

____ 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