Costs Flashcards
1
Q
What is the equation for variable costs
A
Cost per unit times quantity sold
2
Q
What is the equation for total costs
A
Fixed costs plus variable costs
3
Q
What is the equation cost per unit
A
Total variable costs divided by quantity sold
4
Q
What is the definition of fixed costs
A
Costs that don’t change in line with output/ sales
5
Q
What is the definition of variable costs
A
Costs that do change in relation to output/sales
6
Q
Examples of fixed costs
A
Wages, rent, utilities, rates
7
Q
Examples of variable costs
A
Packaging, overtime, stock
