A-Level Business Studies ยท Session 2

Fixed vs
Variable Costs

Drag each cost into the correct column. Switch between scenarios โ€” your cafe, the garden centre, and your future music studio.

Fixed Cost
Stays the same regardless of how much you sell or produce. You pay it even if you sell nothing.
๐Ÿ  Like your rent โ€” it doesn't matter if you're busy or quiet, it's the same every month.
Variable Cost
Changes in direct proportion to output. The more you produce or sell, the more you spend.
โ˜• Like coffee beans โ€” you only buy them when you need to make a coffee to sell.
The test: If you sold zero things today, would you still have to pay this cost? Yes โ†’ Fixed. Does the cost only happen when you make a sale? Yes โ†’ Variable.
Drag these costs into the right column โ†“
Fixed Costs
0
Variable Costs
0
Sort all costs to check your answers