Free Printable Costs and Revenues

1.

Which of the following would be considered a variable cost for a private school?

a)

New science equipment

b)

The complimentary books that are given to each student

c)

Staff wages

d)

School fees

2.

The best definition of variable costs is:

a)

They vary with the number of units produced.

b)

They vary over time.

c)

They vary with the prices charged by suppliers.

d)

They vary with tax rates set by government.

3.

What is an operating cost?

a)

Something a business pays before the company starts

b)

Something the company receives

c)

Something the company pays for their day to day running

d)

Something the company cant afford

4.

How are operating costs broken down?

a)

Fixed & Total

b)

Total & Variable

c)

Total & Indirect

d)

Fixed & Variable

5.

If Saleem makes £250 from selling fresh juice, £80 from selling ice creams, £95 from selling lollies and pays £30 to his assistant, what is his total revenue?

a)

£395

b)

£425

c)

£455

d)

£250

6.

What can be considered a fixed cost for a hair salon?

a)

Shampoo

b)

Electricity

c)

Discounts offered to returning costumers

d)

Staff salaries

7.

What would be considered an indirect cost for a single store of a national fast food retailer?

a)

Purchasing supplies

b)

The store manager's salary

c)

The equipment used in-store

d)

National advertising

8.

Which of the following would not be an example of a revenue stream for an airline?

a)

Money from customer upgrades

b)

Food and drink sales on board

c)

Selling tickets

d)

Jet fuel

9.

Average fixed cost in a restaurant will __________ when its clientele increases.

a)

decrease

b)

increase

c)

increase initially and then decrease

d)

remain the same

10.

The expenses that a candy store incurs for goods such as butter, sugar, cocoa and flour are

a)

fixed costs

b)

variable costs

c)

variable and fixed costs

d)

indirect costs

11.

Which one of the following costs is most likely to be variable for a fast food restaurant?

a)

the salary of the manager

b)

the rent of the restaurant

c)

the cost of the food supplies

d)

the machinery used to cook the food

12.

Which 3 of these are costs?

a)

Fixed

b)

Variable

c)

Operating

d)

Revenue

13.

What is the formula for Revenue?

a)

Total Sales + Costs = Revenue

b)

Number of Sales x Price per unit = Revenue

c)

Price per unit x Total Costs = Revenue

d)

Number of Sales - Total Costs = Revenue

14.

If Wendy sells 50 hot dogs at £2 each. What is her revenue?

a)

£250

b)

£100

c)

£120

d)

£52

15.

Which of the following is the best definition of PROFIT?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for their costs.

c)

The total amount of money a business spends.

16.

Your business rents a building on Main Street in Cedar Falls. Every month you pay exactly $750 to rent the building. This is an example of a...

a)

FIXED cost.

b)

VARIABLE cost.

17.

You own a restaurant and every month you must pay your water bill. However, you never know how much that bill will be because the amount changes based upon how much water your business uses. This is a...

a)

FIXED cost.

b)

VARIABLE cost.

18.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his REVENUE for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

19.

Eric wants to start being an Uber driver in the Waterloo/Cedar Falls area. Eric knows that he can make $30 per Uber ride he gives. Eric owns his own car, so his only expense is to pay $5 in gas for every ride he gives. Eric gives 15 rides this week, his PROFIT for the week will be...

a)

$30

b)

$75

c)

$375

d)

$450

20.

Which cost is Fixed?

a)

Sandwiches

b)

Ingredients

c)

Utilities

d)

Stock

Costs and Revenues

Total questions: 20

Worksheet time: 10mins

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