Quantitative Skills

Question 1

Set-up costs

Answer 1

Items of expenditure needed to start a business (such, as purchasing machinery and equipment and deposits)

Question 2

Running costs

Answer 2

the ongoing costs of operating a business (such as wages, salary

Question 3

Fixed costs

Answer 3

The cost a business incurs regardless of quantity produced (such as rent, interest payments, marketing, salaries

Question 4

Variable costs

Answer 4

Costs that change in proportion to the level of output.

Question 5

Direct costs

Answer 5

Expenditure that is directly attributed to the output to an individual product or project; without this these costs would not be incurred. However not necessarily related to the level of output.

Question 6

Indirect/overhead costs

Answer 6

Expenditure that cannot be directly attributed to a specific project/product. (tax, utility bills, advertising)

Question 7

TC

Answer 7

TFC + TVC

Question 8

TVC

Answer 8

AVC x Quantity

Question 9

AFC

Answer 9

TFC / Quantity

Question 10

AC

Answer 10

TC / Q or AVC + AFC

Question 11

AVC

Answer 11

TVC / Quantity

Question 12

TR

Answer 12

Price x Quantitu

Question 13

AR

Answer 13

TR / Q or P