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Worksheets

Costs

Total questions: 34

Worksheet time: 17mins

Name
Class
Date
1.

Under 18’s cannot work more than

a)

9 hours a day or 40 hours a week

b)

8 hours a day or 40 hours a week

2.

Remuneration means

a)

Financial reward for working e.g wages, tips

b)

Financial reward for working tips only

3.

If you earn a salary, are you paid by the hour or a fixed amount each month?

a)

Fixed amount each month

b)

Paid by the hour

c)

Paid weekly

d)

Paid only for overtime

4.

Money is needed for which of these when running a business?

a)

Cleaning materials

b)

Waste disposal

c)

Staff wages

d)

All of the above

5.

If a business does not make enough money to cover costs, then there will be _________.

a)

no profit

b)

extra income

c)

huge sales

d)

more investment

6.

What will happen if a business does not make enough money to cover its costs?

a)

The business will expand

b)

The business will make a profit

c)

This will lead to a closure of the business

d)

The business will hire more employees

7.

These are mainly things that get 'used up' by customers or employees and need to be replaced regularly. Fill in the blank: ________ are used up and need to be replaced regularly in establishments.

a)

Ingredients

b)

Napkins

c)

Beverages

d)

Equipment

8.

Fill in the blank: ________ is a material needed by residential establishments.

a)

Shampoo

b)

Sandpaper

c)

Engine Oil

d)

Paint Thinner

9.

What is included in the total amount paid by a business in labour costs?

a)

Wages

b)

Payroll taxes

c)

Employee benefits

d)

All of the above

10.

Labour costs can vary due to the skills of the employee. For example, a head chef will have a ______ wage than a chef de partie.

a)

higher

b)

lower

c)

equal

d)

fixed

11.

Labour costs can change when there are changes to the national minimum wage.

a)

True

b)

False

12.

What are regular bills that a business must pay to continue running? Fill in the blank: Regular bills include rent, electricity, water, and _____.

a)

gas

b)

internet

c)

wages

d)

ingredients

13.

Establishments need to be able to pay their bills on time.

a)

True

b)

False

14.

Which of the following is an example of an overhead cost?

a)

Waste disposal

b)

Marketing

c)

Product development

d)

Customer service

15.

Classify the following item into the correct category: Rent

a)

A) Materials

b)

B) Labour

c)

C) Overheads

16.

Classify the following item into the correct category: Wages

a)

Materials

b)

Labour

c)

Overheads

17.

Classify the following item into the correct category: Coffee

a)

Materials

b)

Labour

c)

Overheads

18.

Classify the following item into the correct category: Cleaning materials

a)

Materials

b)

Labour

c)

Overheads

19.

Classify the following item into the correct category: Maintenance of equipment

a)

Materials

b)

Labour

c)

Overheads

20.

Business’s need to make a profit __

a)

to be successful

b)

to pay taxes

c)

to hire employees

21.

What is an example of an overhead cost?

a)

rent, water, gas, maintenance, pest control

b)

raw materials used in production

c)

direct labor wages for manufacturing

d)

sales commissions for each product sold

22.

Name an example of Overhead.

a)

Electricity cost

b)

Raw material cost

c)

Sales revenue

d)

Employee salary

23.

Name an example of Labour.

a)

Wages of factory workers

b)

Rent of land

c)

Interest on capital

d)

Profit of entrepreneur

24.

Name an example of Material.

a)

Raw materials like steel

b)

Running shoes

c)

Electricity

d)

Mathematics

25.

What is the term used when a business makes money?

a)

Revenue

b)

Loss

c)

Profit

d)

Expense

26.

What is the formula for Gross profit?

a)

Sales - food costs

b)

Sales - all costs

c)

Sales + food costs

d)

Sales + all costs

27.

Gross profit is the money left over when the materials cost is taken off.

a)

True

b)

False

28.

What is the formula for Net profit?

a)

Sales - food costs

b)

Sales - all costs

c)

Sales + food costs

d)

Sales + all costs

29.

If the selling price of a chocolate tart is £5.50 and the ingredients cost £2.00, what is the gross profit?

a)

£3.50

b)

£7.50

c)

£2.00

d)

£5.00

30.

Calculate the net profit for sticky toffee pudding using the formula: Net profit = Sales - all costs. Selling price is £6.50 and total costs are £5.10.

a)

£1.40

b)

£2.00

c)

£0.90

d)

£1.00

31.

Why does a business need to make a profit?

a)

It needs to make money to stay in business

b)

To avoid paying taxes

c)

To increase the number of employees

d)

To reduce competition

32.

Correct ordering of ingredients/materials affects the amount of profit made by a business.

a)

True

b)

False

33.

Good or bad reviews from customers affect the amount of profit made by a business.

a)

True

b)

False

34.

What must a business do to make a profit and be successful according to the passage?

a)

Ignore changing factors

b)

Adapt to changing factors

c)

Focus only on profit

d)

Avoid competition