Business Studies (9-1) - 0986 CIE

Identify And Classify Costs:

Gbogbo ọrọ náà

Before a business can set a price, judge a product or decide whether to keep making something, it must know its costs, and not all costs behave the same way. Some stay the same whatever you produce; others rise with every extra unit. Telling them apart is the foundation of business decisions.

In this lesson you will learn to classify costs as fixed, variable, total and average, with worked examples, and then to use cost data to make simple decisions, such as setting a price or deciding whether to stop or continue production.

Ebumnobi

  1. Classifying costs using examples, e.g. fixed, variable, average, total
  2. Use cost data to help make simple cost-based decisions, e.g. to stop production or continue

Nkuzi Olu

Gee ntị na nkuzi a na ngwa

Maapụ uche

E seela isiokwu a ka ị hụ otu echiche si ejikọta.

Mepee maapụ uche na ngwa

Kaadị ncheta

Omume ncheta ngwa ngwa n'ihe a na-anwale n'isiokwu a.

Mee omume kaadị ndị a na ngwa

Akwụkwọ Ọmụmụ

Costs drive almost every business decision: pricing, whether a product is worth making, which location is cheaper, and how much profit is left. Getting the cost classification wrong leads to wrong prices and bad decisions. Examiners regularly give you cost data and ask you to calculate and then decide, so accuracy and the right formula matter.

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Nnyocha Ọmụmụ

Ekele diri gi maka imecha ihe karịrị na Identify And Classify Costs:. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  1. Which is a fixed cost for a factory? A. raw materials B. piece-rate wages C. factory rent D. packaging per unit Answer: C
  2. Fixed costs of $20,000 and variable costs of $35,000 give a total cost of: A. $15,000 B. $35,000 C. $55,000 D. $700,000,000 Answer: C
  3. Average cost is calculated as: A. total cost times output B. total cost divided by output C. fixed cost minus variable cost D. revenue divided by price Answer: B
  4. Total cost $80,000 and output 4,000 units gives an average cost of: A. $2 B. $20 C. $200 D. $320,000 Answer: B
  5. A variable cost is one that: A. never changes B. changes as output changes C. equals total revenue D. is paid only once Answer: B

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