Costs And Revenue

Retained profit is the biggest source of Finance for UK companies.

• A.

  True

• B.

  False

Which of the following is not a valid reason for sourcing finance for your company during a recession?

• A.

  Start up

• B.

  Running costs,

• C.

  Yachts for the board of directors

• D.

  Renewal / replacement e.g. when there is a catastrophe

• E.

  Limited expansion

____________ costs do not change with the amount produced or sold.

In a bakery, flour is an example of a ___________ cost.

Choose the word that best describes what 'Bottom line'  is in business.

• A.

  Gross profit

• B.

  Net profit

One unit of product A costs $43.00 to produce and sells for $69.00.  Product B costs $66 to produce and retails for $93.25. Which product has the higher contribution? (Indicate letter only)

How many items must be sold in a month to cover total fixed costs of $3,450 if the unit sells for $45 but had originally been bought for $22.

• A.

  152 units

• B.

  151 units

• C.

  150 units

• D.

  154 units

Athough usually a fixed cost, electricity used in some businesses such as a dry-cleaning business, may be a variable cost.

• A.

  True

• B.

  False