10 Business Studies Finance Revision

Choose which definition is NOT correct for the term 'Budget'

• Saving money

• Estimate of revenue and costs for a set period of time

• Estimate of money to spend

• What a business can spend on certain areas

Fixed costs are...

• Costs that are changeable

• Costs that are negotiable

• Outgoing costs that remain the same

• Costs that are variable

What is revenue?

• Money that comes into a business through sales

• Money that a business spends

• Money that a business is owed

• Money that a business allows for in its budget

What four elements does a business need to consider when pricing a product or service?

• Materials, cost analysis, marketing, loan repayments

• Materials, labour, skills, loan repayments

• Materials, marketing, loan repayments, skills

• Materials, labour, marketing, loan repayments

What figures are used to conduct a break even analysis?

• Fixed costs, selling price & skills set

• Fixed costs, selling price & variable costs

• Fixed costs, variable costs & estimated costs

• Fixed costs, selling price & revenue

Calculate the break even analysis for the following:

Heather's Halloween Shop wants to open another store. She has asked for you to conduct a break even analysis to see if it's viable.

Use the figures to conduct the analysis - draw the answers below.

Fixed costs are $55,000, selling price per Halloween outfit is $40 and variable cost is $15 per Halloween outfit.

What is the formula used to conduct a break even analysis?

• Revenue/selling price - fixed cost = break even

• Fixed cost/selling price - variable cost = break even

• Fixed cost/selling price - revenue = break even

• Fixed cost/variable cost - selling price = break even

Why is a running budget important?

• It helps with your exercise

• You get to negotiate pricing

• It helps keep an ongoing tally of what you're spending

• It keeps a guideline of set costs

If Sally has a budget of $100, what would she have remaining after she spends:

$20 on vegetables

$33 on fruit

$21 on cheese

$13 on bread

• $12

• $15

• $13

• $11

If Phil has a budget of $220 to visit Bunnings and he spends the following, what does he have remaining?

$80 on tools

$44 on plants

$57 on fencing

$33 on paint

• $6

• $8

• $12

• $9