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WorksheetsCosts and Break-even Analysis
Total questions: 20
Worksheet time: 20mins
Raw materials costs for a steel manufacturer are an example of its.........costs.
fixed
average
total
variable
A bakery has weekly fixed costs of $600. The variable costs during one week of operation were $1800 and the output acieved was 6000 loaves. The average cost of each loaf was......
$0.10
$0.30
$0.40
$4.00
All of the following are likely causes of diseconomies of scale except.....
weak coordination between departments
obtaining a large loan at a preferential interest rate
low motivation levels of workers
long chains of communication
A computer manufacturing business is planning to open a new factory. It will have annual fixed cost of $1m. The average variable cost of each computer will be $100 and the business plans to sell them for $350 each. They expected break-even level of output will be........units per year.
1000
2500
4000
10000
Tax, Insurance and Interest expense are parts of .....
average cost
total cost
variable cost
fixed cost
Use of specialist machinery to produce large quantities of products that small businesses cannot afford this is an example of economies of scale.......
purchasing economies
financial economies
technical economies
managerial economies
Total Fixed Costs (FC) of IDR 100.000.000, Total Variable Costs (VC) per unit of IDR 60.000, The selling price of goods per unit is IDR 80.000
BEP Unit Calculation......
5000 units
5500 units
6000 units
6500 units
One of the assumptions of break-even analysis is that the fixed cost remains.....
dynamics
constant
changed
dependable
To find the total revenue, we can calculate it by .......
multiplying quantity sold and the price
multiplying volume of sales and variable cost
multiplying total cost and the price
multiplying expected unit sales and the total cost
When a business never reaches the BEP, what will happen to that business?....
loss and have to gain their profit by making lower selling price
loss and possibility to stop the business
surplus and they gain more sales because lower from BEP
volume up and lowering price per unit
The income (amount of money) a business receives for in exchange for a product or service...
costs
loss
profit
sales revenue
What is the equation for revenue?...
Price x Quantity
Profit x Quantity
Price x Profit
Price + Quantity
A positive difference between the revenues taken in by a business and the costs of operating a business ( when a business makes more than it spends)...
loss
breakeven
profit
sales
A negative difference etween the revenues taken in by a business and the costs of operating a business (when a business spends more than it makes)....
profit
loss
breakeven
closed
The price at which goods or services are offered by a business to their customers is called ....
selling price
variable cost
cost
currency
Economies of scale reduce the total costs of a business as it grows
true
false
If the variable costs of producing each unit of output are reduced then the break-even level of output will increase (assuming no other changes)
true
false
One of the assumptions of break-even analysis is that the scale of production remains unchanged
true
false
The difference between current output and the break-even level of output...
profit
margin of safety
contribution per unit
break event point
Price per unit minus variable costs per unit....
Fixed cost
Margin of safety
Contribution per unit
Diesconomies of scale
