Question 1: How do variable costs and fixed costs differ? Give an example of each.
Question 2: Analyze your personal expenses on a variable and fixed basis. What are some of your personal fixed costs and variable costs? What would cause them to change?
Question 3: What is C-V-P analysis used for? In the process of using C-V-P analysis, what does it mean to "break even"?
Question 4: What is the difference between a direct cost and an indirect cost? Give an example of each in the context of teaching an accounting class at your school.
Question 5: How can out-of-pocket costs and opportunity costs be applied to your personal financial decisions?