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Fixed Costs: Definition, Formula & Examples

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Pack Company Ltd is a company that is involved in the packing of fruits in cans. Which of the following costs is an example of fixed cost for the business?

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1. Which of the formulas below can be used to calculate the total cost (TC)?

2. Identify the statement that best describes fixed costs.

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About This Quiz & Worksheet

This quiz and worksheet will examine your knowledge of calculating fixed costs. You will need to understand which is a fixed cost in a given scenario and be able to identify the correct total cost formula.

Quiz & Worksheet Goals

Use this printable worksheet and online quiz to review:

  • Finding the fixed costs in a given scenario
  • Correct total cost formula
  • Definition of fixed costs
  • Characteristics of fixed costs
  • Calculating total fixed costs

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related business finance lesson
  • Interpreting information - verify you can read information regarding the characteristics of fixed costs and interpret it correctly
  • Problem solving - use acquired knowledge to solve fixed costs problems

Additional Learning

To learn more about the costs incurred from the likes of equipment, review the corresponding lesson called Fixed Costs: Definition, Formula & Examples. This lesson will help you:

  • Define what fixed costs are
  • Understand what effect production levels have on fixed costs
  • Identify what a company's fixed costs might look like
  • Know the formula for calculating fixed costs
  • Understand how to calculate the fixed costs for a company
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