3.3 Costs and Revenues Flashcards
1
Q
2 categories of costs
A
- fixed costs and variable costs
- direct costs and indirect costs/ overheads
2
Q
variable cost
A
vary with output
(impacted directly by production)
3
Q
fixed cost
A
don’t vary with output or activity
4
Q
ex of variable costs
A
materials
packaging
delivery
commission & piece-rate wage
cleaning
5
Q
graphing variable costs
A
total variable costs on different quantities of output
6
Q
examples of fixed costs
A
salaries and fixed wages
rent and mortgage
machines
fixtures
insurance
7
Q
graphing fixed costs
A
straight line of fixed
8
Q
total costs
A
total variable costs + fixed costs
9
Q
A
