Average costs, variable costs, fixed costs, total costs

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

1. What are fixed costs?

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

2. What are variable costs?

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

3. 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

4. What is the equation for total cost?

  • Total cost = Variable cost/Fixed cost
  • Total cost = Fixed cost + Variable cost
  • Total cost = Fixed cost/ Variable cost

5. Where aircraft are owned by the airline, this is the cost of what?

  • Any debt
  • Any loaned finance and also depreciation
  • Any loaned finance

Comments

davidsalter

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

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