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Yr10Loungerlizards

Total questions: 47

Worksheet time: 24mins

Name
Class
Date
1.

Jamie builds and sells boxes for worm farms. The materials to build cost $13. She sells the boxes for $20. How much profit will Jamie make?

a)

$7

b)

$27

c)

$13

d)

$20

2.

Two of these formulas are correct for working out the break-even point. Which two

a)

Fixed Costs / Contribution Margin per unit

b)

Total Costs - Fixed Costs x variable costs per unit

c)

Fixed Costs / Sales price per unit - variable costs per unit

d)

Contribution Margin per unit / Fixed Costs

3.

If the average variable costs £10, average selling price is £25 and fixed costs are £60,000, then what is the break-even output?

a)

5000

b)

7000

c)

6000

d)

4000

4.

What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?

a)

220,360

b)

150,300

c)

183,633

d)

225,120

5.
My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item? 
a)
£300
b)
£500
c)
£200
d)
Cannot be calculated
6.
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
7.

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

8.
What is the margin of safety?
a)
the margin between projected units and break even point units
b)
the margin between profit and loss
c)
the margin between units and sales
d)
the margin between each break even point
9.

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

10.
What is one limitation to calculating break even?
a)
helps projected sales
b)
based on estimates
c)
based on multiple products
d)
considers stock wastage
11.

When does the break-even point fall?

a)

When fixed costs rise

b)

When depreciation increases

c)

When the selling price decreases

d)

When fixed cost fall.

12.

When does the break-even point fall?

a)

When fixed costs rise

b)

When depreciation increases

c)

When the selling price decreases

d)

When fixed cost fall.

13.

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

14.

A business that does not reach break-even will

a)

go bankrupt

b)

have profit and loss

c)

lose money

d)

need to relocate

15.

Businesses calculate break-even in units so they know

a)

how much profit they will earn after they break even

b)

which products they should purchase for resale

c)

which costs are variable and which are fixed

d)

how many products they must sell to break even

16.

Define variable costs.

a)

costs only related to making the product

b)

overhead costs

c)

combined costs

d)

costs that include marketing

17.

Which of the following is not a direct cost of production for a car manufacturer?

a)

Raw materials

b)

Wages of production workers

c)

Factory rental cost

d)

Depreciation

18.
Which of the following is an example of a cash in-flow for a business?
a)
payment to suppliers
b)
paying back a loan to a bank
c)
payment from debtors
d)
purchase of fixed assets
19.
Which of the following is an example of a cash out-flow for a business?
a)
payments to creditors
b)
sale of goods
c)
payment from debtors
d)
receiving a loan from the bank
20.
Which is the best explanation for a business running into cash-flow problems?
a)
demanding quick payment from customers
b)
allowing customers a long credit period
c)
delaying payments to suppliers
d)
producing goods when demanded by customers
21.
Which of the following is NOT a use of cash-flow forecasts?
a)
They indicate how much cash is available for paying bills
b)
They show how much the bank needs to lend to stop insolvency
c)
They indicate whether the business is holding too much cash
d)
They indicate how much profit the business will make
22.
A firm is forecast to have a negative closing bank balance. Which would reduce the problem?
a)
sell more goods on 4 months credit
b)
produce more goods
c)
ask customers to pay in cash and not sell goods on credit
d)
ask suppliers if the firm can pay for goods in cash
23.
If a cashflow forecast suggests that a firm will run out of cash, which would help the problem?
a)
purchase more fixed assets
b)
repay a bank loan
c)
pay suppliers immediately
d)
delay paying suppliers
24.
The monthly net cash flow for a business is calculated by:
a)
sales revenue - cost of goods sold
b)
total cash in - total cash out
c)
total cash out - total cash in
d)
total cash in - cost of goods sold
25.
The closing bank balance is calculated by:
a)
opening bank balance + cash out-flow
b)
opening bank balance + cash in-flow
c)
opening bank balance + net cash flow
d)
net cash flow + gross profit
26.

A cash flow statement shows an overview of money flowing in and out of a company

a)

True

b)

False

27.
Which of the following is NOT a use of cash-flow forecasts?
a)
They indicate how much cash is available for paying bills
b)
They show how much the bank needs to lend to stop insolvency
c)
They indicate whether the business is holding too much cash
d)
They indicate how much profit the business will make
28.

What is a cost?

a)

Something the company receives

b)

The price of a product

c)

Something the company must pay

d)

Something the company sells

29.

Which 3 of these are costs?

a)

Fixed

b)

Variable

c)

Operating

d)

Revenue

30.

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

31.

Which 2 of these are examples of start up costs for a small supermarket?

a)

Stock

b)

Buy a shop

c)

Pay wages

d)

Pay a recruitment agency to recruit staff

32.

Which 2 of these are examples of operating costs for a transport company?

a)

Buy a Lorry

b)

Diesel

c)

Utilities

d)

Buy a printer

33.

How are operating costs broken down?

a)

Fixed & Total

b)

Total & Variable

c)

Total & Indirect

d)

Fixed & Variable

34.

Which cost is Fixed?

a)

Sandwiches

b)

Ingredients

c)

Utilities

d)

Stock

35.

What is a variable cost?

a)

A cost which does not change

b)

A cost which they must pay even if they produce nothing

c)

A cost which changes the more or less the business produces

d)

A cost the business pays when they start

36.

If Sam's Sandwiches use 25p of material for each sandwich, what will be their variable costs for 10 sandwiches

a)

10 x 0.25 = £2.50

b)

2.5 x 10 = £25

c)

25 x 10 = £250

d)

0.25/10 = 2.5p

37.

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

38.

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

a)

£250

b)

£100

c)

£120

d)

£52

39.

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

40.

If the cost price of an item is ₹10 and the selling price is ₹12, was a profit or a loss made?

a)

profit

b)

loss

c)

neither

41.

Find the loss of an item that cost ₹190 and sold for ₹175.

a)

₹25

b)

₹15

c)

-₹15

d)

₹30

42.
What two things does a budget compare?
a)
Income and Expenses
b)
Savings and Interest
c)
Income and Investments
d)
Expenses and Expenditures
43.
The idea of a budget is to spend exactly as much as you spend.
a)

True

b)
False
44.
When you set a budget, you should never revisit or adjust it.
a)
True
b)
False
45.
This occurs when money is withdrawn from a bank account and the available balance goes below zero.
a)
overdraft
b)
reconcile
c)
balanced
d)
budgeting
46.

A budgeted income statement can be used by the business to predict:

a)

profit

b)

expenses

c)

revenue

d)

all of the above

47.

Purpose of a budget is to:

a)

identify cash in and out flows of a business

b)

determine the actual cash on hand for a previous period

c)

identify revenue earned for the current period

d)

determine expenses incurred for the current period

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