G10 Business Costs and Review

• Business Studies
• Secondary Education

Tuesday, 2nd February 2026

Business Costs 

and Calculations

What types of costs does a business have?

Calculate the total variable cost if:
salary: 50,000 hourly wage: 300 internet: 500 rent: 4,500 electricity: 4,000 delivery: 3,000 materials: 5,000

Calculate the total fixed cost if:
salary: 50,000 hourly wage: 300 internet: 500 rent: 4,500 electricity: 4,000 delivery: 3,000 materials: 5,000

1. 12,000
2. 50,000
3. 55,000
4. 58,500

Calculate the total cost:
Fixed cost-55,000 Dirhams
Variable cost-65,000 Dirhams
Product selling price 300 Dirhams

1. 0.84615
2. 1.18181
3. 120,000
4. 3,575000

Profit is made when the total costs of production are less than the total revenue.

1. true
2. false

Elegance Abaya Factory in Ajman produced 1,000 abayas last month and had a total cost of 64,000 Dirhams.

1. 0.0156
2. 64
3. 640
4. 156

Al Ain Dairy company produced 5,000 bottle of milk last month and had a total cost of 25,000 Dirhams. Calculate the average cost of making a bottle of milk.

1. 0.25 Fils
2. 5 Dirhams
3. 15 Dirhams
4. 25 Dirhams

We can use the information to decide on the selling price of one abaya. 

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Fixed cost is 40,000 for rent, salaries and internet. Variable costs are 55,000. Calculate the total cost.

1. 85,000
2. 90,000
3. 95,000

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