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Component 3 - Revenue/Costs Part 2 - Topic 4

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

1) Which of the following is the term for indirect costs of running a business

a)

Turnover or Sales

b)

Cost of Sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

2.

2) Which of the following is the term for profits made before expenses are deducted?

a)

Turnover or Sales

b)

Cost of Sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

3.

3) Which of the following is the term for stock purchases?

a)

Turnover or Sales

b)

Cost of Sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

4.

4) Which of the following terms considers income made through sales?

a)

Turnover or Sales

b)

Cost of Sales

c)

Gross Profit

d)

Expenses

e)

Net Profit

5.

5) Turnover – cost of sales = Gross Profit – Expenses = which of the following terms?

a)

Total Costs

b)

Variable Costs

c)

Fixed Costs

d)

Net Profit

6.

6) If turnover is lower than cost of sales what will happen to gross profit?

a)

Gross Profit is Positive

b)

Gross Profit is Negative

7.

7) Which of the following is NOT a means of increasing gross profit?

a)

Increasing the price

b)

Reducing Cost of Sales

c)

Bulk buying stock to get a cheaper price.

d)

Reducing Expenses

8.

8) Which of the following is NOT a means of increasing net profit?

a)

Reducing cost of sales

b)

Reducing expenses

c)

Increasing wages

d)

Increasing price

9.

9) Which of the following is the correct means by which you calculate the gross profit margin?

a)

Turnover - cost of sales

b)

Turnover - expenses

c)

Gross Profit / Turnover x 100

d)

Net Profit / Turnover x 100

10.

10) Which of the following is the correct means by which you calculate the net profit margin?

a)

Turnover - cost of sales

b)

Turnover - expenses

c)

Gross Profit / Turnover x 100

d)

Net Profit / Turnover x 100

11.

11) What is the Gross Profit figure (A)

a)

£60,000

b)

-£80,000

c)

£20,000

d)

£80,000

12.

12) What is the Net Profit figure (B)?

a)

£45,000

b)

£35,000

c)

£115,000

d)

£75,000