Paper 2 - 2022 - MCQs

(P2. 2022) A customer has bought a laptop from a computer shop.

By law, the computer shop must:

• match the price charged by a local competitor

• offer to upgrade the laptop for no extra charge

• provide virus protection to keep the customer’s files safe

• supply a laptop of satisfactory quality

(P2. 2022) Customer engagement:

• allows customers to try before they buy

• contributes to good customer service

• improves the product knowledge of employees

• shortens the supply chain

(P2. 2022) Pallin Ltd’s average level of profit over the last five years is:

• £4000 per year

• £5000 per year

• £6400 per year

• £8000 per year

(P2. 2022) A perfume shop has a gross profit margin of 50%.

This means:

• for every £10 of sales, it makes £5 profit after all costs have been paid

• the perfume shop’s variable costs are exactly half of its fixed costs

• the shop charges customers double what it pays when buying the perfume

• to make £10 of profit, it needs to sell £50 of perfume

(P2. 2022) QT Homeware Ltd manufactures small kitchen appliances. The company has recently received a number of emails complaining that its kettles leak.

Which of the following actions would help QT Homeware Ltd deal with this problem?

• Include a cloth to wipe up any leaks in the box of all new kettles

• Launch a promotional campaign in a housekeeping magazine

• Meet with production workers to discuss how to reduce costs

• Physically test every hundredth kettle to ensure it is watertight

(P2. 2022) A drum kit manufacturer plans to make 500 drum kits this year. Estimated costs are as follows:

raw materials £40 per drum kit

rent £600 per month

heating and lighting £900 per quarter

other expenses £56 000 per annum

The manufacturer’s estimated total cost for the year is:

• £66 840

• £77 500

• £85 900

• £86 800

(P2. 2022) Which of the following is not a disadvantage of automation?

• Expensive to buy, so will need to find a way of raising finance

• Machines can break down, disrupting production

• Operatives may need additional training, increasing business costs

• The machinery can be reprogrammed, making production more flexible

(P2. 2022) Marble & Sons' opening balance for September is expected to be:

• -£9900

• -£4700

• £4700

• £9900

(P2. 2022) Which one of the following is the most likely reason for a greeting card manufacturer to locate its factory on an out-of-town industrial estate?

• Council incentives offering reduced business rates

• Greeting cards are destroyed if they get wet during transportation

• Lots of people who work on the industrial estate will buy cards

• The need to be close to the market because customers are unwilling to travel

(P2. 2022) Which of the following would be a variable cost for a restaurant?

• Fruit and vegetables

• Advertising fees

• Buildings insurance

• Chef’s salary