1.1b Costs Flashcards
1
Q
Variable costs definition
A
Costs which change as output varies
2
Q
Do fixed costs change as output varies?
A
No
3
Q
Total costs formula
A
Total costs = variable costs + fixed costs
4
Q
Fixed costs examples
A
Salaries, heating, rent
5
Q
Variable costs examples
A
Raw materials, operating costs
