Component 3 - Revenue/Costs Part 2 - Topic 4

1) Which of the following is the term for indirect costs of running a business

• Turnover or Sales

• Cost of Sales

• Gross Profit

• Expenses

• Net Profit

2) Which of the following is the term for profits made before expenses are deducted?

• Turnover or Sales

• Cost of Sales

• Gross Profit

• Expenses

• Net Profit

3) Which of the following is the term for stock purchases?

• Turnover or Sales

• Cost of Sales

• Gross Profit

• Expenses

• Net Profit

4) Which of the following terms considers income made through sales?

• Turnover or Sales

• Cost of Sales

• Gross Profit

• Expenses

• Net Profit

5) Turnover – cost of sales = Gross Profit – Expenses = which of the following terms?

• Total Costs

• Variable Costs

• Fixed Costs

• Net Profit

6) If turnover is lower than cost of sales what will happen to gross profit?

• Gross Profit is Positive

• Gross Profit is Negative

7) Which of the following is NOT a means of increasing gross profit?

• Increasing the price

• Reducing Cost of Sales

• Bulk buying stock to get a cheaper price.

• Reducing Expenses

8) Which of the following is NOT a means of increasing net profit?

• Reducing cost of sales

• Reducing expenses

• Increasing wages

• Increasing price

9) Which of the following is the correct means by which you calculate the gross profit margin?

• Turnover - cost of sales

• Turnover - expenses

• Gross Profit / Turnover x 100

• Net Profit / Turnover x 100

10) Which of the following is the correct means by which you calculate the net profit margin?

• Turnover - cost of sales

• Turnover - expenses

• Gross Profit / Turnover x 100

• Net Profit / Turnover x 100