EEL213-1

The expenditure you incur in a business are called “Profits”.

• True

• False

The Costs that we incur on product that we have to sell to the customers, are called as “................... Costs”.

• Ads

• Product

• Place

• Money

Roy is selling paintings. His costs are ........................

• Paints, drawing board and brushes

• Electricity for Lights

• Nails and hammer

• All

Iva starts a garage. She pays rent for the place even when she has no car to repair. This rent is her ..................... cost

• fixed

• variable

• regular

• sunk

Costs that do not change.

• fixed cost

• variable cost

• sunk cost

• no cost

The more products you produce, costs will increase. Which is this cost ?

• Variable

• Fixed

• Money

• Profit

Theo sells tea. He spends $10 for one tea. How much is his cost if he sells 20 teas ?

• $200

• $20

• $10

• $2