Start up costs and running costs

1. Start up costs and running costs

2. Starter What is a cost to a business?

3. Learning outcome P1 Identify the difference between start up and operating costs, variable and fixed costs. (TW)

4. Different costs Start-up costs and Operating costs (running costs) Fixed costs and Variable costs Total costs

5. P1 Identify the difference between start up and operating costs, variable and fixed costs. (TW) Task • Write own definitions in exercise book using page 68 and 69. • Start-up, fixed, variable and operating costs.

6. P1 Identify the difference between start up and operating costs, variable and fixed costs. (TW) Check your understanding Mr Edgoose and Ms Hardy are thinking of opening a “Joke Shop” in Ryton. They need to think carefully about what costs there might be. Shoulder partner: list as many items as you can that would be needed (timed activity) Join with another group: work together to allocate your items into two list – start-up and operating costs

7. P1 Identify the difference between start up and operating costs, variable and fixed costs. (TW) Check your understanding Mr Edgoose and Ms Hardy need further help in identifying which of the operating costs will be fixed and which will be variable. Add F/C next to the items you have in your list.

8. Pairs Task • “Which costs?” Worksheet (stretch for merit students second side) • Pg 69 activity-identify different costs only do Q1 of this activity • Extension: task 2 of above activity