G10 T2 CP2 Practice Exam

Which business department is responsible for making products?

• Production

• Marketing

What is an input?

• The resources needed for the production process

• The finished product

What is an output?

• The resources needed for the production process

• The finished product

What type of resources are the people in a business?

• Natural resources

• Human resources

What type of resources are things that come from nature?

• Natural resources

• Human resources

One of the responsibilities of production is to develop and test new products. Which function of the production department is this?

• Production and planning

• Design and technical support

Which other business department helps the production department to plan and control money?

• Finance

• Human resources

What is the break-even point?

• Total sales revenue = Total costs

• Total sales revenue - Total costs

BEP = Fixed costs / (Selling price - Variable costs). A coffee shop sells a cup of coffee for 5 AED. The fixed costs including rent and electricity bills are 3000 AED per month. The variable cost per cup of coffee including coffee beans and cups is 2 AED.

Calculate the Break-Even point (BEP).

• 1000

• 500

According to the break-even chart, what does it mean for the business to be making a PROFIT?

• The business is making MORE sales revenue than total cost

• The business is making LESS sales revenue than total cost.