Average costs, variable costs, fixed costs, total costs

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  • Created by: Jade
  • Created on: 17-11-12 14:20

1. What is the equation for total cost?

  • Total cost = Fixed cost + Variable cost
  • Total cost = Fixed cost/ Variable cost
  • Total cost = Variable cost/Fixed cost
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2. What are variable costs?

  • The total cost of production or provision of a service
  • Costs that vary directly with output produced e.g. labour, fuel, raw material costs
  • Costs that are independent of output produced e.g rent, interest paid on loans

3. What is the total cost?

  • The total cost of production or provision of a service
  • The total cost of production of a service
  • The total cost of provision of a service

4. In air transport, a substantial fixed cost item is the annual sum that has to be paid to?

  • Lease aircraft
  • Lease airports
  • Lease passengers

5. Nature of costs in most types of transport is that _____ costs are a relatively high proportion of total costs. Particularly true of air and rail transport.

  • Fixed
  • Variable
  • Capital



10 questions on costs that can provide a break from more intensive studying.

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