CAIE IGCSE Business Studies 4.4.1 identify and classify costs
Practise cost-classification questions by defining cost terms, calculating totals and using figures to recommend a product or order.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define fixed costs as costs that do not change with output in the short run.
- Calculate revenue, total cost or profit before comparing products or orders.
- Justify a cost-based decision using margins, costs, price and case evidence.
4.4.1—Identify and classify costs question 1
GHT is a public limited company. It produces steel products including gates and garage doors. GHT has a flat organisational structure and a short chain of command. GHT has many stakeholder groups including 600 employees. The Managing Director is considering introducing job rotation to improve employee motivation. He has also been analysing some financial data. An extract is shown in Table 3.1.
Table 3.1
Define 'fixed cost'.
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