20.2.3 - Based on Behavior
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Define fixed costs and give one example.
💡 Hint: Think about costs that remain constant every month.
What are variable costs? Provide one example.
💡 Hint: Consider costs that vary with how much you produce.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What type of cost remains unchanged in the short term?
💡 Hint: Think about costs that don't change with how much output you have.
Do variable costs increase or decrease when production rises?
💡 Hint: Consider what happens each time you make another unit.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company produces 1000 units at a total variable cost of ₹30,000 and has fixed costs of ₹20,000. If production increases to 1500 units, what will be the total cost?
💡 Hint: First, find the variable cost per unit, then apply it to the new production level.
If a business has total costs of ₹50,000, consisting of fixed costs of ₹20,000 and variable costs, how would you calculate the variable costs given a production level of 400 units?
💡 Hint: Think about isolating variable costs from total costs.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.