WorksheetsNational 5 Bus Mgt Break-even
Total questions: 20
Worksheet time: 11mins
Name
Class
Date
1.
What is the name given to the method of calculating whether a product will make a profit or loss in the future?
a)
Break-even Analysis
b)
Preparing an Income statement
c)
Preparing a Cash Budget
d)
Working out a Source of Finance
2.
Break-even analysis can help a business take good financial ___________
a)
Journeys
b)
Decisions
c)
Sales
d)
Banking
3.
What does break-even analysis NOT help answer?
a)
The profitability of a product or service at a level of sales
b)
The number of units needed to be sold cover all costs
c)
The changes in profit for different levels of sales of a product
d)
The overall company profit or loss made in a year
4.
What three lines are normally shown on a break-even chart?
a)
Fixed costs, variable costs and sales
b)
Fixed costs, total costs and sales
c)
Variable costs, total costs and sales
d)
Total costs and sales
5.
Where on the y-axis of a break-even chart does the total costs line always start?
a)
At the amount of fixed costs
b)
At the amount of variable costs
c)
At zero
d)
At the amount of sales
6.
What is the name given to fixed costs + variable costs?
a)
Overall costs
b)
Total costs
c)
Company costs
d)
Break-even costs
7.
If total costs are greater than sales, what will the company make?
a)
Neither a profit or loss
b)
A loss
c)
A profit
d)
A surplus
8.
What is the definition of a fixed cost?
a)
A cost which does vary with output or sales
b)
A cost which does not vary with output or sales
c)
A costs which must be paid by each company
d)
A cost which does not need to be paid by each company
9.
Select the example of a variable cost from list below
a)
Rent
b)
Insurance
c)
Raw materials
d)
Bank loan repayments
10.
What is the definition of a variable cost?
a)
A cost which does vary with output or sales
b)
A cost which does not vary with output or sales
c)
A costs which must be paid by each company
d)
A cost which does not need to be paid by each company
11.
Select the example of a fixed cost from the list below
a)
Wages of piece rate staff
b)
Raw materials
c)
Machine fuel
d)
Light and heat
12.
When does break-even happen?
a)
Total costs = Total sales
b)
Total costs > Total sales
c)
Total costs < Total sales
d)
Total costs = Fixed + Variable costs
13.
What is made to the right of the Break-even Point on a chart?
a)
Profit
b)
Loss
c)
Surplus
d)
Deficit
14.
Fill in the blank. The name given to the difference between BEP and actual sales above this point is ________ __ __________
a)
Margin of safety
b)
Sales margin
c)
Safety zone
d)
Sales surplus
15.
What is made to the left of the Break-even Point on a chart?
a)
Profit
b)
Loss
c)
Surplus
d)
Deficit
16.
What does the y-axis show you on a break-even chart?
a)
Level of sales in units
b)
Level of sales in £
c)
Level of sales and costs in £
d)
Sales and costs in units
17.
What does the x-axis show you on a break-even chart?
a)
Level of sales in units
b)
Level of sales in £
c)
Sales and Costs in units
18.
My total sales are £10,000 for 1,000 units. What must my selling price be for one unit?
a)
£10
b)
£1
c)
£100
d)
Cannot be calculated
19.
My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item?
a)
£300
b)
£500
c)
£200
d)
Cannot be calculated
20.
What is the correct definition of Sales Revenue?
a)
The income received from selling goods and services
b)
The total net cash flow
c)
Amount of returns by customer
d)
Number of items sold by a company
100 %
