Business Studies Finance

Classify the following cost as either fixed or variable:

Materials

• Fixed

• Variable

Which one of the following costs is most likely to be variable for a fast food restaurant?

• the salary of the manager
• the rent of the restaurant
• the cost of the food supplies
• the machinery used to cook the food

The total revenue of a business is:

• the same as profit
• equal to total costs
• quantity of units produced times unit production cost
• quantity of units sold multiplied by the sellingprice.

A cash flow is useful for

• Informing the business about its profits

• Helping the business see where cash shortages may occur

• Seeing the flow of cash from the business to the bank

• Choosing the best method of finance to expand the business

A cash flow shortage in a business is often solved by arranging

• An overdraft

• A loan

• Crowdfunding

• Selling shares

What is the net cash flow?

• -£16,000

• -£7,000

• £12,000

• £26,000

What is the closing balance?

• -£12,000

• -£2,000

• £9,000

• £26,000

How do you calculate 'Revenue'?

• Price per unit x Quantity Sold
• Total income x Quantity
• Income - Total Costs

How do you calculate 'Gross Profit'?

• Revenue - Total costs
• Revenue - Fixed Costs
• Revenue - Cost of Sales

How do you calculate 'Total Costs'?

• Fixed Costs - Variable costs

• Fixed costs + Variable costs

• Fixed Costs / Direct Costs