You've learned about fixed and variable costs and why they matter for business planning. Now let's practice analyzing cost structures for different business types.
Understanding your cost structure helps you price correctly and plan for profitability.
Engagement Message
Ready to dive into cost analysis?
Type
Sort Into Boxes
Practice Question
Let's analyze cost structures for different business models.
In business, fixed costs are expenses that stay the same regardless of how much you sell (like rent or salaries), while variable costs change depending on your sales volume (like materials or shipping).
Sort these businesses into the correct cost structure categories:
Labels
- First Box Label: High Fixed, Low Variable
- Second Box Label: Low Fixed, High Variable
First Box Items
- Consulting firm
- Software company
- Online courses
Second Box Items
- T-shirt printing
- Handmade jewelry
- Catering service
Type
Fill In The Blanks
Markdown With Blanks
A food truck owner is planning their business costs. Fill in the missing cost categories:
Fixed Costs: Truck payment, permits, insurance = $2,000/month
[[blank:Variable Costs]]: Food ingredients, fuel, supplies = $8 per meal sold
Break-even: Need to sell [[blank:250 meals]] monthly to cover fixed costs
Suggested Answers
- Variable Costs
- 250 meals
- Startup Costs
- Operating Costs
