ESB V2 Domain 4 Lessons 2 & 3

Front

Fixed costs remain the same no matter the volume of ____________. [Fixed and Variable Costs]

Back

production

Front

Variable costs ___________ depending on production. [Fixed and Variable Costs]

Back

fluctuate

Front

A ______________ is used to identify the amount of cash a company is spending every month. [Analyze a Company’s Cash Flow]

Back

burn rate

Front

A _____________ is used to make projections about a company’s future performance. [Analyze a Company’s Cash Flow]

Back

run rate

Front

Return on investment (ROI) is used by businesses to show them how much their ___________ is earning.

Back

investment

Front

ROI gives business owners a way to calculate whether their product or service is ________________ or if they need to make adjustments.

Back

cost-effective, cost effective

Front

What is the formula for determining burn rate?

Back

Burn rate = Month starting balance - Month ending balance

Front

What is the formula for determining a return on investment (ROI)? Options: ROI = (Net profit + Cost of investment) x 100, ROI = (Net profit / Cost of investment) x 100, ROI = (Net profit / Cost of investment) / 100, ROI = (Net profit - Cost of investment) x 100

Back

ROI = (Net profit / Cost of investment) x 100

Front

What is the formula for determining run rate? Options: Current revenue for one month + 12, Current revenue for one month / 12, Current revenue for one month x 12, Current revenue for one month - 12

Back

Current revenue for one month x 12

Front

Fixed costs change depending on the volume of production

Back

False