Which of the following costs is a variable cost?
Rent
Raw materials
Advertising
Which of the following is a fixed cost?
Electricity
Which of the following calculations gives the total costs of a business?
Adding fixed costs to sales revenue
Subtracting variable costs from sales revenue
Adding variable costs to fixed costs
What would the variable costs be if the output level is zero?
Equal to fixed costs
Zero
Equal to sales revenue
On a break-even chart, which line does sales revenue meet at the break-even point?
Variable costs
Total costs
Fixed costs
Which lines are normally plotted on a break-even chart?
Total costs, variable costs and fixed costs
Sales revenue, variable costs and fixed costs
Sales revenue, total costs and fixed costs
At what point does total revenue equal total costs?
Break-even point
Contribution
How would you calculate selling price per unit from a break-even chart?
Sales revenue divided by output
Total costs minus fixed costs then divided by sales revenue
Fixed costs divided by sales revenue minus variable costs
The difference between actual output and the break-even point is known as?
Margin of safety
Profit
What are fixed costs divided by to calculate the break-even point?
Selling price
Sales revenue