Profit, Profitability and ARR Topic 5.3

What is meant by selling price?

• What a customer charges a business for a product.

• What a business charges its customers for a product.

• What a business charges its employees for a product.

• What a customer charges other customers for a product.

What is meant by the term "revenue"?

• The money a business has to pay for its products and services.

• The money a customer gains from selling its products and services.

• The money a business gains from selling its products and services.

• The money a customer has to pay for its products and services.

What is the formula for total revenue?

• Cost price x quantity sold

• Selling price x cost price

• Selling price x quantity made

• Selling price x quantity sold

What is a variable cost?

• A cost that directly relates to the making of a product or purchase of stock.

• A cost that directly relates to the operation of the business.

• A cost that directly relates to the salaries of the managers.

• A cost that directly relates the start-up of a business

Which are examples of variable costs?

• Rent

• Raw materials

• Stock

• Advertising

• Components

What are fixed costs?

• Costs that relate to the making of a product or service.

• Costs that relate to the buying of stock

• Costs that relate to the running of the business.

• Costs that relate to the wages of production workers.

Which are examples of fixed costs?

• Advertising

• Stock

• Ingredients

• Insurance

• Rent and rates

What is the formula for variable costs?

• Cost price x quantity sold

• Selling price x quantity made

• Cost price x quantity made

• Selling price x quantity sold

What are total costs?

• All the costs involved in the making of the products and services.

• All the costs involved in the running of the business.

• All the costs involved in the paying of the workforce,

• All the costs involved in the making of the products and running of the business.

What is the formula for total costs?

• Fixed costs - Variable costs

• Fixed costs + Variable costs

• Variable costs - Fixed costs

• Fixed costs x Variable costs