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3.1 Cost of producing the product - Match-up

Match-up definitions and answers with key terms and examples. Press submit to check your answers.

Fixed costs
Variable costs
Total costs
Total cost per unit
Variable cost per unit
Fixed cost per unit
Loan interest
Salaries
Wages
Raw materials
Utilities
Insurance
Advertising
Rent
Packaging
Loan repayments


Answers
Protection bought against unforeseen events, paid in regular instalments regardless of the level of output.
A regular payment for the use of premises, due even when no products are sold.
The combined spending on producing goods or services over a set period, such as a month.
A regular payment to employees, usually monthly, that does not change with output.
Pay to workers based on hours worked or output, which changes with production.
Expenses that do not change with the level of output or sales.
Expenses that change directly with the number of units produced or sold.
Natural or synthetic substances used directly in making a product, varying with output.
The combined spending on production in a period divided by the number of items made.
The amount of spending that stays the same at any output, spread across each item made.
The charge for borrowing money, paid regularly and not dependent on sales.
Money spent making customers aware of a product, which is paid before any sales are made.
Services such as gas, water and electricity supplied to a business, paid for whatever the level of output.
The amount spent on inputs and labour needed to make one additional item.
Money returned to a lender that reduces the debt, shown as a liability rather than a cost.
Materials used to wrap and protect products, which rise and fall with the number of items produced.
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