U2 Business for finance

Question	Answer
Start-up costs = The money spent by a business before it starts trading. name one example of a start-up cost	One example would be a till or shop sign or a specific piece of equipment for the business, for example, a lawnmower for a gardening business.
What is an operating cost	an operating cost can be referred to as a running cost. Operating costs are the everyday running costs of a business. For example, utility bills.
What is a fixed cost referred to as	An indirect cost
What is a variable cost referred to as	direct cost
Define fixed costs	costs that DO NOT change with output
Define variable costs	Cost that DO change with out put
an example of a variable cost would be...	raw materials
an example of a fixed cost would be...	rent

Resource summary

	Created by Jess Thornton over 5 years ago