1.3 Understanding Business Aims and Costs_part 1

What are the goals that a business sets itself over a period of time called?

• Objectives

• Aims

• Targets

• Strategies

Which of the following refers to the targets that help a business achieve its aims?

• Goals

• Objectives

• Strategies

• Plans

What are costs incurred before the business is running known as?

• Running costs

• Fixed costs

• Start-up costs

• Variable costs

Which costs do not vary with the output produced?

• Variable costs

• Fixed costs

• Running costs

• Start-up costs

What is the term for the amount of income received from selling goods or services?

• Revenue

• Profit

• Sales volume

• Price

What is the difference between total revenue and total cost called?

• Loss

• Profit

• Contribution

• Margin

What is the level of output where total revenue equals total costs?

• Break-even point

• Margin of safety

• Contribution analysis

• Profit margin

Which of the following is the reward for lending and the cost of borrowing?

• Revenue

• Interest

• Profit

• Contribution

What is the term for costs that vary directly with the amount produced?

• Fixed costs

• Variable costs

• Start-up costs

• Running costs

What is the term for the number of items sold by a business over a period of time?

• Revenue

• Sales volume

• Price

• Profit