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RO64 LO2.1

Total questions: 23

Worksheet time: 16mins

Name
Class
Date
1.

What costs stay the same regardless of the amount of units produced?

a)

Fixed costs

b)

Variable costs

c)

Operating Costs

d)

Total Costs

2.

What costs increase and decrease based on the amount of units produced?

a)

Fixed costs

b)

Variable costs

c)

Operating Costs

d)

Total Costs

3.

What is the combination of fixed costs and variable costs?

a)

Diego Costa

b)

Super costs

c)

Operating Costs

d)

Total Costs

4.

What are costs?

a)

the things a business needs to pay for

b)

the amount a customer pays for a product

c)

the amount invested in a business

d)

the value of all stock

5.
A Salary is a _____________________
a)
hourly pay amount
b)
fixed regular payment
c)
paid bi weekly or monthly.
6.

An example of salaried job is a ______________

a)

cashier

b)

electrician

c)

teacher

d)

delivery driver

7.

Wages are a

a)

fixed cost

b)

variable cost

8.

Salaries are a

a)

fixed cost

b)

variable cost

9.

Loan repayments are a

a)

Fixed cost

b)

Variable cost

10.

Insurance repayments are a

a)

Fixed cost

b)

Variable cost

11.

Stock costs are a

a)

Fixed cost

b)

Variable cost

12.

Advertising costs are a

a)

Fixed cost

b)

Variable cost

13.

Packaging costs are a

a)

Fixed cost

b)

Variable cost

14.

Utilities costs (gas, electric, water) are a

a)

Fixed cost

b)

Variable cost

15.

Website maintenance and hosting costs are a

a)

Fixed cost

b)

Variable cost

16.

Which of these is the formula for total costs?

a)

Fixed costs + variable costs

b)

Fixed costs - variable costs

c)

Fixed costs ÷\div variable costs

d)

Fixed costs ×\times variable costs

17.

Which of these is the formula for total variable costs?

a)

Variable cost per unit ×\times number of units produced

b)

Variable cost per unit ++ number of units produced

c)

Variable cost per unit ÷\div number of units produced

d)

Variable cost per unit - number of units produced

18.

Sunny Beach Supplies sells bucket and spades to holiday makers in Walton on Sea. The owner, Jim, has provided the following information:


For an output level of 100 buckets and spades, the fixed costs are £3000 and the variable costs are £500.


Calculate total costs for an output of 100 buckets and spades.

a)

£3500

b)

£3000

c)

£500

d)

£1,500,000

19.

Sunny Beach Supplies sells bucket and spades to holiday makers in Walton on Sea. The owner, Jim, has provided the following information:


For an output level of 100 buckets and spades, the fixed costs are £3000 and the variable costs are £500.


Calculate the cost per unit for one bucket and spade.

a)

£5

b)

£1

c)

50p

d)

£50

20.

Sunny Beach Supplies sells bucket and spades to holiday makers in Walton on Sea. The owner, Jim, has provided the following information:


For an output level of 100 buckets and spades, the fixed costs are £3000 and the variable costs are £500.


Calculate total costs if output increased to 150 buckets and spades.

a)

£3750

b)

£5000

c)

£3500

d)

£750

21.

What does break even point show?

a)

where a business is neither making a profit or loss

b)

how many items to give away for free

c)

how much profit they're making

d)

where a business has more fixed costs than variable

22.

What assumption does this statement say "Break even is 54 units"?

a)

if we sell 55 we aren't making a profit

b)

if we sell 54 we begin to make a profit

c)

if we sell 55 we begin to make a profit

d)

if we sell 54 we are not yet at break even point

23.

What is the formula for contribution?

a)

cost price - selling price

b)

fixed costs - variable costs

c)

selling price - variable cost

d)

selling price - cost price