Component 3 - Revenue/Costs Part 1 -Topic 3

Which of the following are start-up costs for a restaurant?

• Wages

• Rent

• Furniture

• Stock

Which of the following are running costs for a restaurant?

• Furniture

• Buying an oven

• Paying for logo design

• Purchase of Ingredients

Which of the following are both fixed costs?

• Rent & Stock Purchases

• Salaries & Wages

• Wages & Rent

• Insurance & Salaries

Which of the following is NOT a variable cost?

• Paying Rent

• Paying Wages

• Paying for Ingredients

• Fuel for Deliveries

How do you calculate total costs?

• Variable Costs x Quantity

• Fixed Costs + Total Variable Costs

• Start Up Costs + Running Costs

• Start Up Costs + Variable Costs

How do you calculate turnover or net sales?

• Net Sales - Cost of Sales

• Gross Profit - Expenses

• Fixed Costs + Variable Costs

• Price x Quantity Sold

___________ is calculated by turnover – cost of sales

• Gross Profit

• Net Profit

• Closing Balance

• Opening Balance

____________ is calculated by gross profit – expenses

• Gross Profit

• Net Profit

• Closing Balance

• Opening Balance

If a business wishes to increase its gross profit they may wish to

• Lower Prices

• Find Cheaper Suppliers

• Raise their Cost of Sales

• Keep the price the same

If a business wishes to increase its net profit it must.

• Raise Cost of Sales

• Raise Expenses

• Reduce Prices

• Reduce Expenses