alleryStart learning →The costs rule for a business is built from two kinds of cost. Which pair does it hold?
AOnly costs that change with the amount made
BFixed costs such as rent plus running costs
COnly costs that stay the same every month
DMoney taken in plus the wages that go out
Answer & Solution
Correct answer: B. Fixed costs such as rent plus running costs
1. Some costs are the same whatever gets made, such as rent and wages, and these are the fixed costs.
2. Other costs rise and fall with the amount made, such as power and water, and these are the variable costs.
3. A costs rule adds the two kinds together, so both must appear.
4. Options A and C each keep only one of the two kinds.
5. Option D mixes money coming in with money going out, which belongs to two different rules.
_Source: OpenStax College Algebra (CC BY 4.0), Ch 7 "Systems of Equations and Inequalities", section 7.1 Systems of Linear Equations: Two Variables_
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