How are total variable costs calculated?

Variable cost per unit x output level

What is meant by cash flow?

The movement of money in and out of a business

What is a variable cost?

Costs that vary directly on the level of a business' output

What does it mean to break even?

When the business has not made a profit or a loss

How is a business' contribution per unit calculated?

Selling price per unit - variable cost per unit

What is the formula used to calcuate a business' break even point?

Fixed costs / contribution per unit

How is total revenue calculated

Selling price x number of sales

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RO64 Enterprise and Marketing Concepts LO2 Revision Quiz

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Questions 20

Answers

1
How is net cash flow calculated?
Cash inflow - cash outflow
Cash outflow - cash inflow
Cash inflow x cash outflow
Cash inflow / cash outflow
2
A business' break even point is calculated using existing financial data?
False
True
3
Which of the following is not an example of a variable cost?
Stock
Packaging costs
Salaries
Components
4
How are total variable costs calculated?
Variable cost per unit x output level
Variable cost per unit x fixed cost per unit
Variable cost per unit / output level
Variable cost per unit + output level
5
What is the toy manufacturer's total profit or loss?
-£2,400
£2,600
£2,000
£2,500
6
What is meant by cash flow?
The money left after all costs have been paid
The movement of money out of a business
The movement of money into a business
The movement of money in and out of a business
7
What is a variable cost?
Costs that vary directly on the level of a business' output
Costs that remain unchanged when the output of a business changes
All the business' costs for a particular level of output
The money a business earns from selling goods or services
8
Net cash flow and profit are the same thing
True
False
9
A toy manufacturer makes 200 toys. It costs them £2 a toy to make and their fixed costs are £2,000. Total costs =
£2,200
£2,400
£2,000
£2,100
10
Total costs = Fixed costs + Variable costs
False
True
11
Which type of data does not appear on a break even graph?
Fixed costs
Variable costs
Total costs
Revenue
12
What does it mean to break even?
When the business has not made a profit or a loss
When a business makes a profit
When a business makes a loss
When one business in a marger breaks away from the other
13
What is meant by a unit?
Multiple products that can be sold
One product that can be sold
Where a business can store all its documents
A place where goods are stocked
14
What is the toy manufacturer's break even point?
87
2023
1,977
80
15
Profit = Total revenue / Total costs
False
True
16
The toy manufacturer has sold all their toys at £25 each. What is their total revenue?
£2000
£6000
£5000
£4000
17
How is a business' contribution per unit calculated?
Variable cost per unit - selling price per unit
Selling price per unit / variable cost per unit
Variable cost per unit / selling price per unit
Selling price per unit - variable cost per unit
18
Which of the following is not an example of a fixed cost?
Rent
Loan repayments
Raw materials
Insurance
19
What is the formula used to calcuate a business' break even point?
Contribution per unit / fixed costs
Contribution per unit x fixed costs
Contribution per unit - fixed costs
Fixed costs / contribution per unit
20
How is total revenue calculated
Selling price / number of sales
Selling price - number of sales
Selling price + number of sales
Selling price x number of sales

RO64 Enterprise and Marketing Concepts LO2 Revision Quiz Flashcards | StudBud