WorksheetsEnt 2 Hughes Standard 2
Total questions: 10
Worksheet time: 5mins
Standard 2.02: Why is it important for a business to calculate its break-event point?
To determine the point where total revenue equals total expenses.
To maximize taxes.
To set employee salaries.
To find out how much to invest in the stock market.
Standard 2.02: Which of the following is an example of an indirect cost in a business?
Raw materials used to make a product.
Factory worker wages.
Rent
Packaging for products.
Standard 2.01: Which of the following is included in the cost of sales for a business?
Rent for office space
Advertising expenses
Raw materials used to produce goods.
Employee training costs.
Standard 2.01: Which of the following is NOT considered a typical start-up category for a new business?
Equipment and Supplies
Marketing and Branding
Business travel expenses
Legal and Licensing
Standard 2.02: A company produces handmade furniture. Which of the following should be classified as a direct cost?
Electricity bill
Wood and nails
Cost of advertising
Salary
Standard 2.02: A company sells a product for $50 each. The total fixed costs are $10,000 and the variable cost per unit is $30. How many units must be sold to break even?
200
400
500
300
Standard 2.01: What is the first step in determining the cost of a new product?
Setting a random price based on competitors.
Identifying all production and material costs.
Choosing a price that feels right.
Asking customers how much they would pay for it.
Standard 2.03: What defines a variable expense?
It stays the same regardless of sales.
Changes based on business activity.
Always a one time cost
It is a long-term cost that never changes.
Standard 2.03: Which of the following is an example of a fixed expense?
Raw materials
Employee wages
Monthly rent
Utility bills that change each month
Standard 2.01: How is sales revenue calculated?
Total expenses - total profits
Total profits * number of customers
Fixed costs + Variable Costs
Number of units sold * selling price per unit
