The Purpose and Nature of Business (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is profit in business terms?
What is profit in business terms?
Money left after costs deducted from revenue
How is revenue calculated?
How is revenue calculated?
Units sold × Price per unit
Which term is NOT another name for revenue?
Which term is NOT another name for revenue?
Profit margin
How do variable costs behave as output changes?
How do variable costs behave as output changes?
They change in direct proportion to output
Which is an example of a variable cost?
Which is an example of a variable cost?
Raw materials
What defines fixed costs?
What defines fixed costs?
Costs that stay constant in short term
Which is an example of a fixed cost?
Which is an example of a fixed cost?
Rent
What formula calculates total costs?
What formula calculates total costs?
Fixed costs + Variable costs
A firm has revenue of £40,000 and total costs of £30,000. What is the profit?
A firm has revenue of £40,000 and total costs of £30,000. What is the profit?
£10,000
What is it called when costs exceed revenue?
What is it called when costs exceed revenue?
A loss (negative profit)