Cost of Doing Business Quiz

What does COGS stand for?

Which of the following can be decreased to earn more profit per unit?

• Startup Costs

• Fixed Expenses

• Variable Expenses

• Selling Price

Which of the following would be considered a VARIABLE expense?

(Select all that apply)

• Labor

• Insurance

• Materials

• Rent

The total cost of making one unit is also known as:

• COGS

• Startup Costs

• Definition of one unit

• Fixed Expenses

An ongoing expense a business must pay usually on a monthly basis to be able to operate is called:

• Fixed Expense

• Variable Expense

• COGS

• Startup Costs

Which of the following would be considered a FIXED expense?

(Select all that apply)

• Labor

• Utilities

• Materials

• Rent

Calculate total Cost Of Goods Sold using the information provided below:

Materials: $1.50

Labor: $2.00

Selling Price :$12.99

Delivery Cost: $3.00

Fixed Expenses: $145

• $6.50

• $3.50

• $6.49

• None of the above

Calculate total the contribution margin using the information provided below:

Materials: $1.50

Labor: $2.00

Selling Price :$12.99

Delivery Cost: $3.00

Fixed Expenses: $145

• $6.50

• $3.50

• $6.49

• None of the above

Calculate the total break even units per month using the information provided below:

Materials: $1.50

Labor: $2.00

Selling Price :$12.99

Delivery Cost: $3.00

Fixed Expenses: $145

• 12 units

• 23 units

• 30 units

• 5 units

The amount of profit collected per unit is kown as:

• contribution margin

• break even units

• COGS

• Fixed Expenses