Diagnostic Test in Business Mathematics

A number is proportionate to another when as one value increases, so does the other.

• Direct Proportion

• Indirect/Inverse Proportion

• Partitive Proportion

• Ratio

It involves identifying parts of a whole based on a given ration of these parts.

• Direct Proportion

• Indirect/Inverse Proportion

• Partitive Proportion

• Ratio

What is the definition of an indirect proportion?

• It simply means "as one increases, the other one decreases" and vice – versa

• It describes the total amount of an object distributed into two or more unequal parts.

• It is simply a way to divide ratios

• To make them break up

Which of the following best describes a Mark-up?

• The price at which merchandise is offered for sale to the customer

• Also known as gross profit and gross margin

• Original price of the goods paid by the retailer to the manufacturer or supplier

• Amount deducted to the cost in order to cover business expenses and generate profit

Which of the following best describes a Mark down?

• The abbreviation is M

• The formula is to calculate the Markdown is, Markdown=Old Selling Price-New Selling Price

• The formula is to calculate the Markdown is, Markdown=New Selling Price-Old Selling Price

• Is the addition in the selling price of merchandise due to many reasons such as to increase sales, to face stiff competition, to encourage purchase in bulk, to dispose old, damaged/obsolete stocks

A computer is purchased for ₱2,500 with 20% of mark-up based on cost. What is the value of ₱2,500 stand for?

• List Price

• Cash Price

• Cost Price

• Selling Price

What do we call the amount by which the cost is increased on a product to arrive at the selling price?

• list price

• mark-up

• margin

• selling price

What do we call the sales minus the cost of goods sold?

• list price

• mark-up

• margin

• net price

Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold.

• True

• False

• Sometimes

• Frequently

Which of the following statements best describes straight commission?

• Specified amount of money paid for each sale or percent of the total value of sales.

• A unit rate

• Offers a different rate of commission for each level of sales

• Optional salary bonus