Topic 6 Finance Revision

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

Business expenses i.e. what the business spends in its running are referred to as...

• Expenses
• Outgoings
• Costs
• Revenue

What is the formula for Revenue?

• No. Sold  x  Selling Price
• No. Sold x Costs
• Selling Price x Costs
• Selling Price x Total sales

What is the formula for Profit?

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

What is the definition of a fixed cost?

• A cost that varies with output
• A cost that does not vary with output
• Costs that do not change
• Costs that change only when agreed

What is the definition of a variable cost?

• Costs that vary with output
• Costs that do not vary with output
• Costs that are always changing
• Costs that cannot change

Which of the following is the best definition of PROFIT?

• The total amount of income a business makes from selling products or services
• The amount of money a business has left over after paying for their costs.
• The total amount of money a business spends.

If you own a home, you must pay for electricity you use.  The amount you pay changes every month depending on how much you use. This is an example of a...

• FIXED cost.
• VARIABLE cost.

Your business rents a building on Main Street in Dewsbury.  Every month you pay exactly £750 to rent the building.  This is an example of a...

• FIXED cost.
• VARIABLE cost.

the total revenue raised by selling 20 items priced £10 each is...

• £200

• £20

• £30

• £220