costs Flashcards
1
Q
what are variable costs
A
Costs which change as output varies
2
Q
what are fixed costs
A
Costs which do not change when output varies
3
Q
give 4 examples of variable costs
A
Raw materials
Bought-in stocks
Wages based on hours worked or amount produced
Marketing costs based on sales (e.g. % commission)
4
Q
give 7 examples of fixed costs
A
Rent & rates Salaries Advertising Insurance, banking & legal fees Software Consultant and adviser costs Design and development
