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WorksheetsCosts and Revenue
Total questions: 25
Worksheet time: 23mins
Name
Class
Date
1.
Which of the following is the best definition of REVENUE?
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.
d)
The amount of money a business loses every month.
2.
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.
3.
Which of the following is the best definition of COSTS?
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 materials.
c)
The total amount of money a business spends.
4.
Which of the following is the equation for figuring out PROFIT?
a)
Profit = Revenue - Cost
b)
Profit = Cost - Revenue
c)
Revenue = Profit - Cost
d)
Costs = Profit - Revenue
5.
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total REVENUE?
a)
$25
b)
$225
c)
$375
d)
$750
6.
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST?
a)
$25
b)
$225
c)
$375
d)
$750
7.
Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total PROFIT?
a)
$25
b)
$225
c)
$375
d)
$750
8.
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.
9.
If you own a home, you must pay for electricity you use. The amount you pay changes every month depending on how much you use. This is an example of a...
a)
FIXED cost.
b)
VARIABLE cost.
10.
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.
11.
You own a lawn-care business and you have two employees. You pay these employees a salary meaning you pay each of these workers $900 every month no matter how much they work. This is an example of a...
a)
FIXED cost.
b)
VARIABLE cost.
12.
Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's REVENUE over the summer?
a)
$150
b)
$200
c)
$300
d)
$500
13.
Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's COSTS over the summer?
a)
$150
b)
$200
c)
$300
d)
$500
14.
Jill made $500 babysitting her neighbors' kids over the summer, but she did not keep all this money as profit. Instead, during the summer Jill also bought a bike for $150, a new pair of shoes for $50, and a new dress for $100. What was Jill's PROFIT over the summer?
a)
$150
b)
$200
c)
$300
d)
$500
15.
What is the formula to calculate sales revenue?
a)
Gross profit - Cost of sales
b)
Cost per unit - Price per unit
c)
Price per unit X Number of units sold
d)
Fixed costs + Variable costs
16.
What does 'B2C' market stand for?
a)
Business to Consumer
b)
Business to Captain
c)
Business to Cost
d)
Business to Calculation
17.
What does 'B2B' market stand for?
a)
Business to Border
b)
Business to Business
c)
Business to Break Even
d)
Business to Boardroom
18.
Which one of the following is a cash inflow?
a)
Raw materials
b)
Staff salaries
c)
Sales revenue
d)
Rent payable
19.
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
20.
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.
21.
If variable costs are $6 per unit,then total variable costs of producing 7,000 units will be:
a)
$7,000
b)
$70,000
c)
$2,100
d)
$21,000
22.
The best definition of fixed costs are those that do not vary with:
a)
time
b)
seasons
c)
output
d)
number of workers.
23.
A product sells for $14. Variable costs are $6.Fixed costs are $120,000. Break-even output is:
a)
15,000 units
b)
120,000 units
c)
40,000 units
d)
we cannot tell from the information given.
24.
The best definition of the contribution made by a product is:
a)
the profit made on each item sold
b)
the revenue gained from selling each item
c)
the difference between price and variable cost
d)
the difference between price and fixed cost
25.
Which of the following is the best definition of economies of scale?
a)
Costs fall as output increases.
b)
Costs per unit fall as the firm expands.
c)
Average costs rise as the firm expands.
d)
Fixed costs fall as output increases.
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