COSTS

Match the correct term to the correct definition or example. Fixed Costs Costs that stay the same no matter how much is produced Variable Costs Costs that change when a businesses output changes Total Costs The sum of the fixed and variable costs Marginal Costs Extra costs of producing one more unit of a product Example of a Fixed Cost Rent payment on a leased property Example of a Variable Cost Labor in a factory Sort the correct business into the correct category. High Fixed Costs and Low Variable Costs Gas Station Low Fixed Costs and High Variable Costs E-Commerce Business Why is it important for businesses to consider all types of costs?