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Economics: Cost, Revenue and Profit

Total questions: 9

Worksheet time: 6mins

Name
Class
Date
1.

Which is the odd one out?

a)

Revenue

b)

Turnover

c)

Income

d)

Profit

2.

Electricity, Materials used in production, Transporting goods to customers, are all types of :-

a)

Fixed costs

b)

Variable costs

c)

Stock items

d)

Tangible products

3.

The (a)   cost is the total cost divided by the number of items produced. Which word is missing?

4.

Market Share is the amount of profit a company makes compared to its competitors.

a)

True

b)

False

c)

Not sure

5.

Profit Maximisation, Sales Growth and increasing Market Share are all examples of what?

a)

Business objectives

b)

Economies of scale

c)

Variable costs

d)

Fixed costs

6.

Increasing Market Share might be achieved by (chose all that apply) ........

a)

Reducing prices

b)

Increasing availability/distribution of a product or service

c)

Investing more in advertising

d)

A company reducing its sales team

7.

Rent, Rates, Salaries, Plant and Machinery, should be considered as what .......

a)

Variable costs

b)

Total costs

c)

Fixed costs

d)

Average costs

8.

How confident are you that you understand the differences between types of costs that a business has?

a)

100%

b)

75%

c)

50%

d)

10%

9.

A product sells for £10, it's variable costs are £ 3.50. Which of the following statements is correct?

a)

This is a total profit of £ 6.50

b)

This is margin of £ 6.50

c)

This is a margin of 65%

d)

This is a £ 6.50 contribution to fixed costs.