Which of the following is the correct definition for fixed costs?

cost's that don't change with output

Businesses use budgets ...

to forecast sales revenue, to set targets

Using a restaurant as an example, which of the following are examples of variable costs?

Food, Phone bill, Washing up liquid, napkins, drinks

Examples of cash inflows include:

Sales of products, Leasing, Grants

In terms of expenditure, which of the following is incorrect?

Having lots of expenditure will help to make more profit

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BTEC Business - Unit 2 Finance - recap

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BTEC Business - Unit 2 - Finance in Business (exam unit) #btecbusiness #unit2

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Questions 16

Answers

1
What is the equation for revenue?
R = Q x P
Costs - Revenue
R = fixed + variable costs
R = P x Q
2
Break even: what would happen if the volume of sales is increased?
Break even point is lower
Break even point is higher
The margin of safety decreases
The margin of safety increases
3
Put simply, Revenue is the money .......
a business loss
coming 'in' to the business
a business has to pay
'leaving' the business
4
How often are start-up costs usually paid?
once
never
twice
monthly
5
Examples of cash outflows include ...
, Payment to suppliers, Rent, Revenue
Payment to suppliers, Rent, Sale of an asset
Power, Rent, Grants
Rent, Salaries, Power
6
Which of the following is the correct definition for fixed costs?
stay the same
cost's that change depending on output
cost's that don't change with output
remain fixed
7
Businesses use budgets ...
to review projects
to forecast sales revenue
to assess performance
to set targets
8
Using a restaurant as an example, which of the following are examples of variable costs?
Food, New cooker
Phone bill, Cutlery
Food, Phone bill
Washing up liquid, napkins, drinks
9
What is the equation to work out total costs?
Fixed Costs / Variable Costs
Fixed Costs + Variable Costs
Fixed Costs X Variable Costs
Fixed Costs - Variable Costs
10
Which apostrophe is in the wrong place.
Greg's business is doing well.
Lucy's party is on saturday.
It's sunny today.
Henrys' phone is ringing.
11
Examples of cash inflows include:
Sales of products, Leasing, Grants
Leasing, Grants, Rent
Sales of products, Leasing, Advertising
Grants, Leasing, Wages
12
Which type of costs change depending on output?
Operating
Variable
Start-up
Fixed
13
In terms of expenditure, which of the following is incorrect?
Expenditure is all of the money a business spends
Expenditure can be split into 2 types
Having lots of expenditure will help to make more profit
Businesses have to spend money to succeed
14
What are operating costs also known as?
Variable costs
Fixed Costs
Running costs
Start-up costs
15
Which term is defined as: 'earned by a business by selling either goods or services'
Break Even
Revenue
Turnover
Costs
16
The costs a business has to pay out when setting up are known as?
Variable costs
Start-up costs
Fixed costs
Operating costs

BTEC Business - Unit 2 Finance - recap Flashcards | StudBud