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SingaporeElements of Business SkillsQuick questions
Money and Financial Records
Quick questions on Sources of income and costs: N-Level Elements of Business Skills
2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are fixed costs?Show answer
A fixed cost stays the same no matter how much the business makes or sells. The business pays it even in a quiet week. Rent is the classic example: the bakery pays the same rent whether it sells a lot or a little. Insurance and a manager's monthly salary are also fixed.
What are variable costs?Show answer
A variable cost changes with how much the business makes or sells. The more it makes, the higher the cost. Ingredients are the classic example: the more bread a bakery bakes, the more flour and eggs it uses. Packaging usually rises with sales too.
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