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WorksheetsBTEC Business Unit 2
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
What is meant by the term Cost of Sales?
a)
All of the money that is coming into a business
b)
The cost of producing a product or a service
c)
The amount of money a business has left over once all costs have been taken out
d)
The selling price of a product
2.
Expenditure is defined as;
a)
Only the money that is spent on buying new stock
b)
All of the money that goes out of a business
c)
Only the money spent on start up costs
d)
All of the money that comes into a business
3.
Which formula would calculate sales revenue?
a)
Selling Price + Number of Items Sold
b)
Selling Price x Variable Costs
c)
Selling Price x Number of Items Sold
d)
Selling Price x Cost of Sales
4.
A business has made a net profit if;
a)
All Costs are greater than Revenue
b)
Revenue is greater than All Costs
c)
Revenue is greater than Cost of Sales
d)
Cost of Sales is greater than Revenue
5.
Which profit is the largest one that a business will make?
a)
Net Profit
b)
Gross Profit
c)
Full Profit
d)
Formula Profit
6.
Overheads are defined as;
a)
The start up costs of a business
b)
The everyday running costs of a business
c)
The variable costs of a business
d)
The fixed costs of a business
7.
What is missing from this formula to calculate gross profit?
Revenue (minus) _____
Revenue (minus) _____
a)
Expenditure
b)
Cost of sales
c)
Cashflow
d)
Income
8.
Select the number which shows the revenue line
a)
1
b)
2
c)
3
d)
4
9.
Select the number which shows the variable costs line.
a)
1
b)
2
c)
3
d)
4
10.
The point where revenue and costs are equal is known as?
a)
Profit
b)
Break Even
c)
Loss
d)
Cashflow
11.
Select the number which shows the fixed costs line.
a)
1
b)
2
c)
3
d)
4
12.
Costs that change with output are known as?
a)
Fixed Costs
b)
Variable Costs
c)
Total Costs
d)
Short Costs
13.
If revenue were to increase, yet variable and fixed costs were to remain the same. What would be in the impact on the break even point?
a)
Break Even Point Increases
b)
Break Even Point Decreases
c)
Break Even Point Remains the Same
14.
Select the number which shows the total costs line.
a)
1
b)
2
c)
3
d)
4
15.
Which of the following are examples of variable costs?
a)
Wages
b)
Raw Materials
c)
Rent
d)
Mortgage
16.
Which of the following are examples of fixed costs?
a)
Salaries
b)
Raw Materials
c)
Rent
d)
Money
17.
Which statement is an example of direct costs for a bakery?
a)
The costs of renting the bakery
b)
The costs of advertising the bread
c)
The cost of flour for making the bread
d)
The cost of electricity for heating the bakery
18.
Identify the purpose of a statment of financial position (balance sheet)
a)
Shows the value of expenses a business has paid
b)
shows the values of all cash outflows for a business
c)
Shows what a business needs to sell to cover its costs
d)
Shows how a business is funded at a point in time
19.
Select one external source of finance for a small business.
a)
Overdraft
b)
Retained Profit
c)
Owners Personal Funds
d)
Sale of Non-Current Assets
20.
Outline what is meant by the term operating costs
a)
The day to day costs of running the business
b)
The costs of setting up the business
c)
One off costs that only have to be paid once
d)
The no profit costs.
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