Font size
Worksheets1.5 Analysis & Interpetation
Total questions: 26
Worksheet time: 11mins
This formula is for calculating...
Markup %
Gross Profit %
Profit %
Percentage Change
This formula is for calculating...
Markup %
Gross Profit %
Profit %
Percentage Change
This formula is for calculating...
Markup %
Gross Profit %
Profit %
Percentage Change
This formula is for calculating...
Expense %
Gross Profit %
Profit %
Percentage Change
This formula is for calculating...
Expense %
Gross Profit %
Profit %
Percentage Change
Markup is the percentage of the cost of inventory that is added to the cost to establish Sale Price
True
False
What two factors contribute to an increase in the Markup Percentage for a business
An increase in Selling Price
A decrease in Selling Price
An increase in the cost of our inventory
A decrease in the cost of our inventory
What two factors contribute to a decrease in the Markup Percentage for a business
An increase in Selling Price
A decrease in Selling Price
An increase in the cost of our inventory
A decrease in the cost of our inventory
A business with high turnover - like Pak n Save - would usually have a high markup percentage
True
False
The Markup Percentage for a business will vary depending on their industry
True
False
Gross Profit is portion of our Sales Price that is spent on our cost of goods sold
True
False
The change in Gross Profit % is linked to changes in our Markup %
If one improves the other improves too; and vice versa
True
False
What can a business do to improve it's gross Profit %
Increase their Selling Price
Offer discounts to it customers
Decrease their selling price
Find a cheaper supplier
Negotiate a lower price from an existing supplier
If the Gross Profit of a business has reduced, what has happened?
Sales price has been reduced to remain competitive
The cost of buying their products has reduced
More discounts have been needed to complete sales
The cost of buying their products has increased
They have increased their sale prices
Which of these expenses are Distribution Costs?
Sales Staff Wages, Advertising, Delivery Costs, Shop Rent
Insurance, rates, office wages, stationery
Interest on Loan, Overdraft Interest, Hire purchase Interest
Which of these expenses are Finance Costs?
Sales Staff Wages, Advertising, Delivery Costs, Shop Rent
Insurance, rates, office wages, stationery
Interest on Loan, Overdraft Interest, Hire purchase Interest
Which of these expenses are Administration Expenses?
Sales Staff Wages, Advertising, Delivery Costs, Shop Rent
Insurance, rates, office wages, stationery
Interest on Loan, Overdraft Interest, Hire purchase Interest
How can a business reduce its Distribution Costs?
Spend less on advertising or target their advertising
Hire more sales staff
Do less deliveries and save on petrol costs
Open a new store branch
Why might Distribution costs have increased?
Hired less staff
Opened a new store
Increased advertising to attract more customers
Changed to a cheaper business to make its deliveries
How can a business reduce its administration expenses?
Find a cheaper electricity supplier
Negotiate cheaper insurance premiums
Use email to make contact with customers rather than posted mail
All of the above would work
Why could Administration expenses have increased?
An increase in electricity costs
Negotiating a cheaper insurance premium
Increased hours and pay rate for the office staff
Less mail sent out by using email to save on postage
How can a business reduce its finance costs?
Refinance their loans to obtain a lower interest rate
Repay some of the principal on any loans
Borrow more money
Use an overdraft facility rather than loan facility
How can a business increase its profit percentage?
Increase their sale prices / markup percentage
Decrease some of their expenses
Neither of these would work
Both of these options to increase profit
A decrease in expense percentage will increase profit percentage
True
False
In a recommendation should you advise a business to reduce wages or dismiss staff?
Yes
No
It is not important to mention the business name or specific expenses in my answers
True
False
