Revenue, Costs and Profit Quiz

What is interest?

• The cost of borrowing money

• The profit from sales

• The total revenue from investments

• The fixed cost of production

If a market stall sells apples at £1.20 per kilo, what is the revenue if 15 kilos are sold?

• £18.00

• £20.00

• £15.00

• £12.00

Which of the following is an example of a variable cost?

• Rent

• Insurance

• Wages

• Property tax

Where does the TC line start on the graph?

• Where the VC line meets the y-axis

• Where the FC line meets the y-axis

• At the origin

• At the highest point of the graph

In financial terms, what is a loss?

• Revenue is greater than total costs

• Total costs are greater than revenue

• Revenue equals total costs

• Revenue is zero

What is the result if a company's total costs are more than its revenue?

• Profit

• Loss

• Break-even

• Dividend

Explain one reason why a start-up business may make a loss in its first year of trading.

• High initial costs

• Excessive profits

• Low competition

• Established customer base

What is the break-even point?

• When total revenue is zero

• When total revenue equals total costs

• When total revenue is greater than total costs

• When total costs are zero

Which of the following is considered a fixed cost?

• Raw materials

• Utilities

• Packaging

• Rent

How is profit calculated?

• Total revenue minus total costs

• Total costs minus total revenue

• Total revenue plus total costs

• Total costs divided by total revenue