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Unit 2 Cost and Profit

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

An example of a cost of goods or services sold for a house painting company would be

a)

Flyers to promote the company

b)

Fuel for the van

c)

Paint

d)

A van to travel to people's homes

2.

If your company has a large production-related task, such as assembling an airplane, what strategy could help you increase productivity?

a)

Decreasing your use of technology

b)

Raising prices

c)

Generalization

d)

Division of labor

3.

For a company that sells greeting cards online and mails the printed cards to customers, a fixed cost would be

a)

The paper and glue to make the cards

b)

Hourly workers who assemble and ship the cards

c)

Packaging and shipping costs

d)

A paper cutting machine

4.

A way to increase possession utility for a refrigerator could be by

a)

Providing a delivery service

b)

Expanding the store hours

c)

Making a Web site with information about the product

d)

Creating brochures about the product

5.

The process when your company buys a car, and its value goes down over time is known as

a)

Leasing

b)

Depreciation

c)

A unit of sale

d)

Interest

6.

The law of diminishing returns is often used to analyze the ideal amount of which factor of production?

a)

Capital

b)

Land

c)

Labor

d)

Entrepreneurship

7.

The amount of money a company has left over once all expenses have been subtracted is known as

a)

Net profit

b)

Revenue

c)

Gross profit

d)

Cost of goods sold

8.

A type of utility that can only be added by the maker of the product is known as

a)

Time utility

b)

Place utility

c)

Form utility

d)

Possession utility

9.

The common measurement that can describe the hours of labor or the number of workers for a company is known as

a)

Division of labor

b)

Use of technology

c)

Diminishing returns

d)

Productivity

10.

The type of goods utility in which a computer game can be purchased and played right away is known as

a)

Time

b)

Value

c)

Information

d)

Form