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WorksheetsBTEC Unit 2 Finance Assessment
Total questions: 30
Worksheet time: 21mins
What is a direct cost?
Costs that increase directly with changes in production or output.
The costs directly involved in making one product.
Costs that remain the same regardless of how many items you make or sell.
Costs other than those involved in making the product.
What is an indirect cost?
Costs that increase directly with changes in production or output.
The costs directly involved in making one product.
Costs that remain the same regardless of how many items you make or sell.
Costs other than those involved in making the product.
What is a fixed cost?
Costs that increase directly with changes in production or output.
The costs directly involved in making one product.
Costs that remain the same regardless of how many items you make or sell.
Costs other than those involved in making the product.
What is a variable cost?
Costs that increase directly with changes in production or output.
The costs directly involved in making one product.
Costs that remain the same regardless of how many items you make or sell.
Costs other than those involved in making the product.
What is a total cost?
Costs that increase directly with changes in production or output.
The costs directly involved in making one product.
Costs that remain the same regardless of how many items you make or sell.
Costs other than those involved in making the product.
Fixed Costs + Variable Costs
Which of the following would be a direct cost of a kitchen knife?
Advertising
The metal in the blade
Rent
Salaries
Which of the following would be a fixed cost of a wood yard?
Petrol for the van
Wood
Electricity
Salary of office staff
Which of the following would be a variable cost of a bookshop?
Books
Rent
Salaries
Insurance
What is the formula for working out total costs?
Fixed Costs + Costs
Indirect Costs:+ Variable Costs
Direct Costs =Variable Costs
Fixed Costs + Variable Costs
How would you describe a start-up cost?
These are the variable costs of a business.
These are the costs of a business.
These are costs which must be met after
the business can start selling any products.
These are costs which must be met before
the business can start selling any products.
Select one type of expenditure for a shoe shop.
Taking out a bank loan.
Paying wages to staff.
Selling shoes to customers.
Displaying accessories.
Identify one source of revenue for a business
Electricity bills paid for running the business.
Wages received by staff for work they do.
Payments received from customers
Purchase of inventory.
Which 2 are an example of an external sources of finance?
Owners' Funds
Sale of assets
Retained profits
Bank loan
Overdraft
James runs a business making wicker chairs. He estimates the following monthly costs: Variable costs of £30 for each chair he makes fixed costs of £120. James make Six chairs in February.
Work out James' total costs for February
180.00
120.00
300.00
80.00
A business has the following monthly costs:
Fixed Costs = £400
Variable Costs £10 per item
What are the variable costs if they make 100 items?
£10
£100
£1000
£10000
£400
Which of these is an example of a business operating in the PRIMARY sector?
Car manufacture
Hairdresser
Burger bar
Fisherman
Which of these is an ADVANTAGE of writing a business plan?
It is quick and easy to do
It allows the entrepreneur to focus on what the objectives are
It means that the business is free from any risk
Sometimes the entrepreneur can over-exaggerate in the plan leading to issues later on
Which of the following is a long term liability
Overdraft
Accounts Payable
Mortgage
Goodwill
Classify the following cost as either fixed or variable:
Rent
Fixed
Variable
Classify the following cost as either fixed or variable:
Utilities
Fixed
Variable
Classify the following cost as either fixed or variable:
Labor - Hourly
Fixed
Variable
Classify the following cost as either fixed or variable:
Materials
Fixed
Variable
Which 2 of these are examples of start up costs for a small supermarket?
Stock
Buy a shop
Pay wages
Pay a recruitment agency to recruit staff
Which 2 of these are examples of operating costs for a transport company?
Buy a Lorry
Diesel
Utilities
Buy a printer
If Sam's Sandwiches use 25p of material for each sandwich, what will be their variable costs for 10 sandwiches
10 x 0.25 = £2.50
2.5 x 10 = £25
25 x 10 = £250
0.25/10 = 2.5p
A building is a:
Current Asset
Current Liability
Fixed Asset
Long term Liability
