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Business studies formulae

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

How would you calculate Total Revenue (TR)?

a)

Price x Quantity sold

b)

Price + Quantity sold

c)

Price / Quantity sold

d)

Price - Quantity sold

2.

Total costs (TC) =

a)

Fixed costs - variable costs

b)

Fixed costs + variable costs

c)

Fixed costs / variable costs

d)

Fixed costs x variable costs

3.

Profit = Total revenue (TR) minus

a)

Sales

b)

Variable costs

c)

Total costs

d)

Fixed costs

4.

Net cash flow =

a)

Receipts x payments

b)

Payments / receipts

c)

Receipts - payments

d)

Payments x receipts

5.

The opening balance is .....

a)

The money in the bank at any time

b)

The money in the bank on the last day of the month

c)

The money in the bank on the first day of the month

d)

The money left after all the bills are paid

6.

Opening balance + Net cash flow flow =

(a)  

7.

The exchange rate is the amount of foreign currency £1 will buy

a)

True

b)

False

8.

What is meant by contribution per unit?

a)

Fixed costs - selling price per unit

b)

Variable costs - Selling price per unit

c)

Selling price per unit - Fixed costs

d)

Selling price - Variable costs per unit

9.

What is the formula for Margin of safety?

a)

Actual sales - Sales at Break Even Point

b)

Actual Sales + Sales at Breakeven Point

c)

Actual Sales x Sales at Breakeven point

d)

Actual Sales / Sales at Breakeven Point

10.

What is the break-even output formula?

a)

Fixed costs / Contribution per unit

b)

Fixed costs / Selling price per unit

c)

Contribution per unit/ / Fixed costs

d)

Fixed costs / Variable costs per unit