L2 BTEC BE

Paying the salaries of managers in a factory is an example of:

• Fixed costs

• Variable costs

• Margin of safety

• Start up costs

Buying a delivery vehicle for an online clothing business is an example of:

• Fixed cost

• Variable cost

• Start up cost

• Break even cost

Current output - break even output =

• Fixed costs

• Margin of safety

• Break even

• total costs

Which of the following is NOT a source of revenue?

• Sales

• Interest

• Tax

• Dividends

Selling price x number sold =

• Fixed costs

• Total costs

• Total Revenue

• Margin of safety

Gross profit =

• Margin of safety + break even

• Revenue x cost of sales

• Revenue - cost of sales

• Selling price - variable costs

Net Profit =

• Revenue - expenses

• Gross profit - expenses

• Expenses - gross profit

• profit - revenue

A start up cost for a school could be:

• Raw materials

• Delivery vehicles

• Large machinery

• a sports field and land for a building

Total costs =

• revenue x selling price

• Revenue - cost of sales

• variable costs - fixed costs

• Fixed costs + Variable costs

A variable cost for a super market could be:

• Managers salaries

• Insurance

• part time workers wages

• Rent