Financial terms and calculations (AQA GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
Why is cost control important for businesses?
Why is cost control important for businesses?
Higher costs reduce potential profits
What is the key characteristic of fixed costs?
What is the key characteristic of fixed costs?
They remain constant regardless of output
Which of these is an example of a fixed cost?
Which of these is an example of a fixed cost?
Employee salaries
How do variable costs change as output increases?
How do variable costs change as output increases?
They change in direct proportion to output
What is the formula for total costs?
What is the formula for total costs?
Fixed costs + Variable costs
How is revenue calculated?
How is revenue calculated?
Selling price per unit × Quantity sold
What is the formula for calculating profit?
What is the formula for calculating profit?
Sales revenue - Total costs
When does a business make a loss?
When does a business make a loss?
When total sales are less than total costs
Which category of investment involves adopting new technology to improve production?
Which category of investment involves adopting new technology to improve production?
Modernisation and mechanisation
What does ARR stand for in investment appraisal?
What does ARR stand for in investment appraisal?
Average Rate of Return
What is the break-even point?
What is the break-even point?
Where total revenue equals total costs
What does the margin of safety show?
What does the margin of safety show?
How much sales can fall before making losses