Costs And Revenue
8 Questions
| Total Attempts: 119
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This covers units 21, 22, 23 and 24 of Denby's book.
Questions and Answers
- 1.Retained profit is the biggest source of Finance for UK companies.
- A.
True
- B.
False
- 2.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
- 3.____________ costs do not change with the amount produced or sold.
- 4.In a bakery, flour is an example of a ___________ cost.
- 5.Choose the word that best describes what 'Bottom line' is in business.
- A.
Gross profit
- B.
Net profit
- 6.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)
- 7.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
- 8.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
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