Fixed & Variable Costs

Question 1

Examples of Fixed costs?

Answer 1

Rent
Insurance
Loan repayments

Question 2

What are Fixed costs?

Answer 2

Costs that remain the same even when sales fall or increase.

Question 3

What are Variable costs?

Answer 3

Costs that will rise when the sales increase and fall when there is a fall in the demand for the products.

Question 4

Examples of Variable costs?

Answer 4

Materials
Electricity
Wages