Fixed & Variable Costs Flashcards
1
Q
Examples of Fixed costs?
A
Rent
Insurance
Loan repayments
2
Q
What are Fixed costs?
A
Costs that remain the same even when sales fall or increase.
3
Q
What are Variable costs?
A
Costs that will rise when the sales increase and fall when there is a fall in the demand for the products.
4
Q
Examples of Variable costs?
A
Materials
Electricity
Wages
