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Worksheets10 Business Studies Finance Revision
Total questions: 10
Worksheet time: 25mins
Choose which definition is NOT correct for the term 'Budget'
Saving money
Estimate of revenue and costs for a set period of time
Estimate of money to spend
What a business can spend on certain areas
Fixed costs are...
Costs that are changeable
Costs that are negotiable
Outgoing costs that remain the same
Costs that are variable
What is revenue?
Money that comes into a business through sales
Money that a business spends
Money that a business is owed
Money that a business allows for in its budget
What four elements does a business need to consider when pricing a product or service?
Materials, cost analysis, marketing, loan repayments
Materials, labour, skills, loan repayments
Materials, marketing, loan repayments, skills
Materials, labour, marketing, loan repayments
What figures are used to conduct a break even analysis?
Fixed costs, selling price & skills set
Fixed costs, selling price & variable costs
Fixed costs, variable costs & estimated costs
Fixed costs, selling price & revenue
Calculate the break even analysis for the following:
Heather's Halloween Shop wants to open another store. She has asked for you to conduct a break even analysis to see if it's viable.
Use the figures to conduct the analysis - draw the answers below.
Fixed costs are $55,000, selling price per Halloween outfit is $40 and variable cost is $15 per Halloween outfit.
What is the formula used to conduct a break even analysis?
Revenue/selling price - fixed cost = break even
Fixed cost/selling price - variable cost = break even
Fixed cost/selling price - revenue = break even
Fixed cost/variable cost - selling price = break even
Why is a running budget important?
It helps with your exercise
You get to negotiate pricing
It helps keep an ongoing tally of what you're spending
It keeps a guideline of set costs
If Sally has a budget of $100, what would she have remaining after she spends:
$20 on vegetables
$33 on fruit
$21 on cheese
$13 on bread
$12
$15
$13
$11
If Phil has a budget of $220 to visit Bunnings and he spends the following, what does he have remaining?
$80 on tools
$44 on plants
$57 on fencing
$33 on paint
$6
$8
$12
$9
