year 1 revision edexcel business a level GCE

Profit satisficing =

• make as much profit as possible

• make enough money to breakeven

• make enough profit to keep owners happy

The missing term =

• net profit (for the year)

• finance costs

• operating profit

• current liabilities

Cost of goods sold = £ .........

Gross profit margin = ..........%

Operating profit margin =

• 26 %

• 48 %

• 52 %

• 62 %

Boston Matrix : A product with low market share and high market growth =

• cash cow

• dog

• star

• problem child (question mark)

Which line is the green arrow pointing to ?

• fixed costs line

• total revenue line

• total costs line

• margin of safety = 1500

• margin of safety = 900

• margin of safety = 600

• margin of safety = 300

Profit area is shaded :

• yellow

• green

• red

Budgeted costs = £4500 Actual costs = £5300

• variance = 800 favourable

• variance = 800 adverse

• variance = 9800 favourable

• variance = 9800 adverse