Chapter 18: Costs & Revenues
2 years ago
deanhoss
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Practice
• Question 1
30 seconds
Q. Which of the following is a reason for managers knowing the costs of the business?
They will be able to increase output.
It will help them fix the price of the product(s).
The information would have to be published to shareholders.
Costs will tell the managers what the firm's profits are.
• Question 2
30 seconds
Q. Which one of the following costs is most likely to be variable for a fast food restaurant?
the salary of the manager
the rent of the restaurant
the cost of the food supplies
the machinery used to cook the food
• Question 3
30 seconds
Q. The best definition of variable costs is:
They vary with the number of units produced.
They vary over time.
They vary with the prices charged by suppliers.
They vary with tax rates set by government.
• Question 4
30 seconds
Q. If variable costs are \$6 per unit,then total variable costs of producing 7,000 units will be:
\$7,000
\$70,000
\$2,100
\$21,000
• Question 5
30 seconds
Q. The best definition of fixed costs are those that do not vary with:
time
seasons
output
number of workers.
• Question 6
30 seconds
Q. The total revenue of a business is:
the same as profit
equal to total costs
quantity of units produced times unit production cost
quantity of units sold multiplied by the sellingprice.
• Question 7
30 seconds
Q. The break-even level of output is that number of units where:
profit is at its highest level
variable costs equal revenue
total costs equal revenue
variable costs equal fixed costs
• Question 8
30 seconds
Q. A product sells for \$14. Variable costs are \$6.Fixed costs are \$120,000. Break-even output is:
15,000 units
120,000 units
40,000 units
we cannot tell from the information given.
• Question 9
30 seconds
Q. The best definition of the contribution made by a product is:
the profit made on each item sold
the revenue gained from selling each item
the difference between price and variable cost
the difference between price and fixed cost
• Question 10
30 seconds
Q. Which of the following is the best definition of economies of scale?