1.1b - Costs Flashcards
1
Q
Variable costs definition
A
Costs which change as output varies
2
Q
Fixed costs definition
A
Costs which do not change as output varies
3
Q
Total costs formula
A
Variable costs + fixed costs
4
Q
Examples of fixed costs:
A
- Salaries
- Heating
- Rent
5
Q
Examples of variable costs:
A
- Raw materials
- Operating costs
- Wages
