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Virtual Business Challenge - Management

Total questions: 42

Worksheet time: 26mins

Name
Class
Date
1.

An Accounts Receivable Specialist is in charge of:

a)

Paying biills on time

b)

Receiving shipments from suppliers

c)

Collecting customer payments

d)

None of the above

2.

An Accounts Payable Specialist is in charge of:

a)

Paying supplier invoices on time

b)

Processing orders

c)

Collecting customer payments

d)

None of the above

3.

A Purchasing Specialist is in charge of:

a)

Paying biills on time

b)

Ordering materials for the business

c)

Collecting customer payments

d)

None of the above

4.

What does a systems administrator do?

a)

monitor systems

b)

layout the production floor

c)

keep the computer system running

d)

monitors employees' performance

5.

Which position is responsible for getting raw materials to the production floor and getting finished products to the shipping area?

a)

Accounts Payable

b)

Accounts Receivable

c)

Assembler

d)

Material Handler

6.

In this simulation, what are "raw materials"?

a)

jeans

b)

jean fabric and thread

c)

cut jeans legs

d)

rough cut pocket

7.

In this simulation, can you make a profit in the long run if you have 2 of each production job?

a)

Yes

b)

No

8.

How long did the management simulation run?

a)

2 weeks

b)

1 month

c)

6 months

d)

2 years

9.

What report shows how many jeans you are making per day?

a)

Balance Sheet

b)

Income Statement

c)

Daily Production

d)

Process Diagram

10.

When your weekly profit shows $-4000 and your total profit shows $-24,000, what will happen if your weekly profit stays the same for another week?

a)

You will have a total loss of $-28,000

b)

You will have a total loss of $-20,000

c)

You will have a total profit of $20,000

d)

You will have a total profit of $28,000

11.

What is revenue?

a)

How much it costs for your raw materials

b)

The total amount of costs you have in your business

c)

The total amount of sales you have in your business

d)

The money you have left over after you have paid your bills

12.

What is your net income?

a)

How much it costs for your raw materials

b)

The amount of costs you have in your business

c)

The total amount of sales you have in your business

d)

The money you have left over after you have paid your bills

13.

What are Cost of Goods Sold (COGS)?

a)

Your expenses - the total costs to run your business

b)

The amount of money you get from selling your product

c)

The amount of money you have going out every week for rent, salaries and machinery

d)

The cost of your raw materials (Jean fabric and thread)

14.

What are fixed expenses?

a)

You expenses - the total costs to run your business

b)

The amount of money you get from selling your product

c)

The amount of money you have going out every week for rent, salaries and machinery

d)

The cost of your raw materials

15.

What happens when you run out of places to put your cut jeans legs?

a)

You pile them up on top

b)

You have to create another pile for your cut jeans legs

c)

Production stops

d)

Production continues, they just go around that part

16.

What is your break-even price for your jeans if you have the following?

COGS - $10,000

Fixed Expenses - $30,000

Daily Production - 125

a)

$64.00

b)

$30.00

c)

$125.00

d)

$40,000

17.

What happens if the computer system goes down?

a)

The systems administrator gets fired

b)

Production stops

c)

Production continues while it is getting fixed

d)

Who knows???

18.

What should be done if a invoice comes in?

a)

The Purchasing specialist should take care of it

b)

The Accounts Payable specialist should take care of it

c)

The Accounts Receivable specialist should take care of it

d)

The Systems Administrator should take care of it

19.

What is the highest price you can charge for jeans and get the bid accepted?

a)

Over $100

b)

$90

c)

$80

d)

$75

20.

Which customer pays the most for a pair of jeans?

a)

Roland

b)

Anne

c)

Calvin

d)

Anthony

21.

What happens if a worker is blocked?

a)

Production stops

b)

The others work around that worker

c)

Nothing, everything continues, they just continue to work

d)

They get fired

22.

What is the first thing in the process of making jeans?

a)

Cutting out fabric

b)

Stamping pockets

c)

Sewing the jeans

d)

Steaming the jeans

23.

What is the last step in the production process?

a)

Sewing jeans

b)

Cutting jeans

c)

Stamping pockets

d)

Steaming jeans

24.

What happens if you are late in delivering your order(s)?

a)

You get more orders

b)

Your customers won't order from you for 6 months

c)

Your customers will cut your payment by 50%

d)

Your customers will get mad, but keep ordering

25.
Which one is not included in the Break Even formula?
a)
variable costs per unit
b)
total fixed costs
c)
selling price per unit
d)
cost price per unit
26.
What does break even point show?
a)
where a business is neither making a profit or loss
b)
how many items to make
c)
how much profit they're making
d)
where a business has more fixed costs than variable
27.
Fixed costs...
a)
Rise less than proportional to 
b)
Labour costs overtime 
c)
Fuel costs delivery van
d)
Do not change in relation to the volume of production
28.
When a business has made enough money to pay its costs and begin to make a profit, it has reached its
a)
break-even point
b)
variable-cost margin
c)
fixed cost
d)
selling price
29.
To draw the BE graph you must plot Total Costs and ........
a)
Total Production
b)
Total Revenue
c)
Total Fixed Costs
d)
Total Units
30.
When is a business making a profit?
a)
When revenues are higher than costs
b)
When revenues equal costs
c)
When revenues are less than costs
31.
What is the definition of Revenue?
a)
Income from the sales of goods and services
b)
Income from the cost of goods and services 
c)
The money made on products
d)
Cash coming into the business from suppliers and customers
32.

How do you calculate revenue?

a)

sales x price

b)

price x cost

c)

cost + sales

d)

sales - total price

33.

What is another name for cost of goods sold?

a)

Fixed Costs

b)

Variable Costs

c)

Total Costs

d)

Revenue

34.

Which of the following is a variable cost?

a)

Raw materials

b)

Rent

c)

Advertising

d)

Salaries

35.

Which of the following is a fixed cost?

a)

Raw materials

b)

Rent

c)

Overtime pay

d)

Electricity costs

36.

How do you calculate "total variable cost"?

a)

variable cost per unit

b)

variable cost per unit + expenses

c)

revenue x variable cost per unit

d)

sales x variable cost per unit

37.

How do you calculate "Total Costs"?

a)

fixed costs x sales

b)

sales + variable costs

c)

variable costs + fixed cost

d)

variable cost x fixed cost

38.

What is a profit?

a)

One of the 4 P's of marketing

b)

a financial gain

c)

where someone loses money

39.

What is a loss?

a)

One of the 4 L's of marketing

b)

an increase in financial value

c)

Where one owes money because the profit did not reach the money spent

d)

I have no idea

40.

Which financial statement shows you the profit or loss of the business?

a)

Income Statement

b)

Balance Sheet

c)

Statement of Cash Flows

d)

Statement of Owner's Equity

41.

What is the Accounting Equation?

a)

Liabilities - Assets = Owner's Equity

b)

Assets = Liabilities + Owner's Equity

c)

Liabilities = Assets + Owner's Equity

d)

Owner's Equity = Assets + Liabilities

42.

Which financial statement shows what the business owns, owes and the value of the business?

a)

Income Statement

b)

Statement of Cash Flows

c)

Statement of Owner's Equity

d)

Balance Sheet