Evaluating Production Costs (Grade 11 NSC Matric Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What do production costs represent for a business?
What do production costs represent for a business?
Total money spent to create products
Which two components make up primary costs?
Which two components make up primary costs?
Direct materials + Direct labour
What is the key difference between fixed and variable overhead costs?
What is the key difference between fixed and variable overhead costs?
Fixed stay same; variable change with output
How do you calculate Primary Cost (PC)?
How do you calculate Primary Cost (PC)?
Direct materials + Direct labour
What is the formula for Total Production Cost?
What is the formula for Total Production Cost?
Primary Cost + Overhead Expenses
How do you calculate Unit Cost?
How do you calculate Unit Cost?
Total production cost ÷ Units produced
What is the formula for calculating Profit?
What is the formula for calculating Profit?
Total revenue - Total costs
What does the break-even point represent?
What does the break-even point represent?
Min. units to sell to cover all costs
How do you calculate Contribution Margin?
How do you calculate Contribution Margin?
Selling price - Variable cost per unit
What is the formula for calculating the break-even point?
What is the formula for calculating the break-even point?
Fixed costs ÷ Contribution margin