Business Costs and Expenses Worksheet

Select one example of a fixed cost for a scarf shop.

• Buying fabric for scarves

• Paying rent for the shop

• Paying commission to sales staff

• Buying thread for stitching

Which of the following is a variable cost?

• Shop insurance

• Electricity bill

• Loan repayment

• Salaries of permanent staff

Which of the following would be considered a start-up cost?

• Buying inventory for the first time

• Paying monthly utilities

• Advertising campaigns during operations

• Paying staff wages regularly

What type of cost is paying wages to shop staff?

• Fixed cost

• Start up cost

• Variable cost

• Total costs

Selling scarves to customers generates which of the following?

• Costs

• Revenue

• Expenses

• Fixed costs

Paying for shop window displays is an example of:

• Direct cost

• Indirect cost

• Variable cost

• Start-up cost

Which of the following best defines ‘total cost’?

• Fixed cost minus variable cost

• Fixed cost plus variable cost

• Revenue minus expenses

• Profit plus expenses

Which document shows a company’s assets and liabilities?

• Income statement

• Balance sheet

• Cash flow forecast

• Breakeven analysis

What is the main purpose of cash flow forecasting?

• To predict future profits

• To estimate future cash inflows and outflows

• To calculate break-even point

• To record all sales made

What does the breakeven point represent?

• The level of sales where total costs equal total revenue

• The amount of fixed costs

• The total profit earned

• The maximum sales possible