financial terminology

Buildings and storage is a type of

• Fixed cost
• Running cost
• Asset

Machinery repairs are a type of

• Running cost
• Fixed cost

Which of the following is a start up cost?

• Staff Wages
• Electricity bill payment
• Purchasing a van
• Break Even

What is a fixed cost?

• A cost that changes depending upon output
• A cost that is paid to your friend
• A cost that stays the same regardless of output
• Money received through the selling of products

What is a variable cost

• Salaries
• A cost that changes depending upon output
• Rent
• Purchase of a computer

Which of the following are not a source of revenue

• Interest payments from savings
• Purchasing of stock
• Selling of products
• Credit sales

How can you improve gross profit?

• Reduce cost of sales figure
• Reduce your rent
• Increase spending on stock
• Stop selling!

How can you improve gross profit?

• Reduce cost of sales figure
• Reduce your rent
• Increase spending on stock
• Stop selling!

What is the definition of Revenue?

• Income from the sales of goods and services
• Income from the cost of goods and services 
• The money made on products
• Cash coming into the business from suppliers and customers

What is the formula for Profit?

• Revenue - Sales
• Revenue - Costs
• Revenue - Fixed Costs
• Revenue - Gross Profit