QUESTIONS WITH VERIFIED ANSWERS [
GUARANTEED A +]
What are start-up costs? - ✔️✔️Costs incurred when setting up a business
Which is a start-up cost? - ✔️✔️First-time purchase of equipment
What are operating costs? - ✔️✔️Day-to-day running costs
Which is an operating cost? - ✔️✔️Electricity bills
©morren2025/2026.Year published 2026.
, What are fixed costs? - ✔️✔️Costs that stay the same regardless of output
Which is a fixed cost? - ✔️✔️Rent
What are variable costs? - ✔️✔️Costs that change with the number of items
produced
Which of these is a variable cost? - ✔️✔️Ingredients
What are direct costs? - ✔️✔️Costs directly related to making a product
Which is a direct cost? - ✔️✔️Wood used to make tables
What are indirect costs also known as? - ✔️✔️Overheads
What is an example of an indirect cost? - ✔️✔️Office heating bill
©morren2025/2026.Year published 2026.