Cash Flow Quiz

Which of the following does NOT appear on a cash flow:

• Inflows

• Opening balance

• Profit

Explain the meaning of the term ‘margin of safety’. (3)

Which of the following is NOT a solution to cash flow problems:

• Re-scheduling payments

• Finding new sources of finance

• Building a strong brand

Organize these options into the right categoriesAt a McDonalds, which of these are fixed and which are variable costs?

Groups:

(a) Fixed Cost

,

(b) Variable Cost

• Lighting

• burgers

• Tables and Chairs

• paper Bags

• Gas for cooking

• TV Advertising

• Cooking Equipment

• Store Managers Salary

What should students be able to understand regarding costs within a business context according to the lesson objectives?

• The difference between variable costs, fixed costs, and total costs

• The calculation of interest rates for bank loans

• The methods for calculating employee salaries

• The strategies for marketing and sales

What is one of the objectives related to investment projects for businesses?

• Understanding the risk management strategies

• Calculating the average rate of return for investment in new machinery, buildings, and vehicles

• Learning about stock market investment

• Planning retirement funds for employees

What is the purpose of break-even analysis in a business context as per the lesson objectives?

• To evaluate the effectiveness of advertising campaigns

• To assess the company's branding strategies

• To evaluate the value of using break-even analysis to a business

• To calculate the company's share value in the stock market

What is the definition of 'cost' in a business context?

• The amount of money charged for a product or service

• The money spent to create and sell products or services, or to acquire assets

• The financial value of a company

• The total revenue generated from sales

What should not be confused with the term 'cost'?

• Value

• Price

• Expense

• Investment

What are Fixed costs (FC) in a business context?

• Costs that increase with the level of output

• Costs that vary depending on the amount of products sold

• Costs that do not vary with the level of output

• Costs that are only associated with the production process