Business Studies Multiple Choice Question – 17 October 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Lucy started a business called StaffordWelly. It makes boots with a high heel to appeal to women and festival-goers.

Lucy wanted to expand StaffordWelly but needed additional capital. They appeared on the television programme SharkTank.

StaffordWelly has many variable costs when running the business.

Which one of the following is an example of a variable cost?

 

Select ONE answer:

  1. Loan repayments
  2. Salaries
  3. Insurance
  4. Raw materials

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4 – the other answers would be fixed costs.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.