Question 1

If you sell $2500 worth of product, pay COGS of $800 and other variable costs of $360, what is your gross profit?

Accepted Answer

A)  $1340 
B)  $1700 
C)  $2464 
D)  $2500 
A)  $1340 
B)  $1700 
C)  $2464 
D)  $2500 A

Question 2

Carla sells hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Last month she sold $4,500 worth of product to 1,000 customers. She spent $800 on buying her beverages in bulk. Her monthly costs are: Utilities = $100, Salary = $2,000, Advertising = $0, Insurance = $0, Interest = $0, Rent (cart) = $500, Depreciation = $0. What are Carla's fixed costs?

Accepted Answer

A)  $2,000 
B)  $2,100 
C)  $2,600 
D)  $2,700 
A)  $2,000 
B)  $2,100 
C)  $2,600 
D)  $2,700 C

Question 3

________ is what remains when you subtract fixed and variable costs and taxes from revenues.

Accepted Answer

A)  Operating profit 
B)  Gross profit 
C)  Net profit 
D)  Gross margin 
A)  Operating profit 
B)  Gross profit 
C)  Net profit 
D)  Gross margin C

Question 4

Carla sells hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Last month she sold $4,500 worth of product to 1,000 customers. She spent $800 on buying her beverages in bulk. Her monthly costs are: Utilities = $100, Salary = $2,000, Advertising = $0, Insurance = $0, Interest = $0, Rent (cart) = $500, Depreciation = $0. What is Carla's monthly cost of goods sold?

Accepted Answer

A)  $800 
B)  $600 
C)  $450 
D)  $100 
A)  $800 
B)  $600 
C)  $450 
D)  $100

Question 5

Why is it best to pay expenses for your business with a check, not with cash?

Accepted Answer

A)  A check can't be traced. 
B)  Cash is easier to lose. 
C)  A check provides written proof of payment. 
D)  Paying with a check keeps check printing companies and banks in business. 
A)  A check can't be traced. 
B)  Cash is easier to lose. 
C)  A check provides written proof of payment. 
D)  Paying with a check keeps check printing companies and banks in business.

Question 6

What are variable costs? How are they broken down?

Accepted Answer

Variable costs are expenses that vary di

Question 7

A(n) ________ is a model or pattern that serves as an example of how a product would look and operate if it were manufactured.

Accepted Answer

A)  prototype 
B)  archetype 
C)  typology 
D)  model 
A)  prototype 
B)  archetype 
C)  typology 
D)  model

Question 8

Record keeping for a very small business can be accomplished by a journal and files for storing ________.

Accepted Answer

A)  records of transactions 
B)  details of seed capital 
C)  details of start-up expenses 
D)  details of marginal costs 
A)  records of transactions 
B)  details of seed capital 
C)  details of start-up expenses 
D)  details of marginal costs

Question 9

Depreciation is the percentage of value of an asset added each year to reflect wear and tear on the asset.

Accepted Answer

A) True 
 B)False

Question 10

In the phrase I SAID U R + "Other FXs", UR stands for ________.

Accepted Answer

A)  utilities, rent 
B)  unknown rates 
C)  unforeseen revisions 
D)  unforeseen rates 
A)  utilities, rent 
B)  unknown rates 
C)  unforeseen revisions 
D)  unforeseen rates

Question 11

The cost of material used to make a product and cost of labor used to make the product is associated specifically with a single ________ of sale.

Accepted Answer

A)  unit 
B)  hour 
C)  dozen 
D)  dollar 
A)  unit 
B)  hour 
C)  dozen 
D)  dollar

Question 12

Describe how an entrepreneur should protect his/her financial records.

Accepted Answer

Always keep a copy of your financial rec

Question 13

If a business sells 5,000 units for a total profit of $200,000, what is its profit per unit?

Accepted Answer

A)  $50 
B)  $400 
C)  $40 
D)  $500 
A)  $50 
B)  $400 
C)  $40 
D)  $500

Question 14

A critical cost for a beginning business is the seed capital.

Accepted Answer

A) True 
 B)False

Question 15

Start-up investment is the one-time expense of opening a business. It is also called ________.

Accepted Answer

A)  entry cost 
B)  seed capital 
C)  down payment 
D)  beginning capital 
A)  entry cost 
B)  seed capital 
C)  down payment 
D)  beginning capital

Question 16

Explain the concept of payback period.

Accepted Answer

The payback period is the estimated time

Question 17

If a business has total gross profit of $14,720 and total operating costs of $11,500, what is its net profit?

Accepted Answer

A)  $3,000 
B)  $3,220 
C)  $1,150 
D)  $0 
A)  $3,000 
B)  $3,220 
C)  $1,150 
D)  $0

Question 18

________ is a review of financial and business records to ascertain integrity and compliance with standards and laws, particularly by the U.S. Internal Revenue Service.

Accepted Answer

A)  Scrutiny 
B)  Assessment 
C)  Due diligence 
D)  Audit 
A)  Scrutiny 
B)  Assessment 
C)  Due diligence 
D)  Audit

Question 19

The percentage of value of an asset subtracted each year until the value becomes zero, to reflect wear and tear on the asset, is called ________.

Accepted Answer

A)  depreciation 
B)  inventory 
C)  deductible 
D)  reduction 
A)  depreciation 
B)  inventory 
C)  deductible 
D)  reduction

Question 20

Fixed operating costs can change over time.

Accepted Answer

A) True 
 B)False

If you sell $2500 worth of product, pay COGS of $800 and other variable costs of $360, what is your gross profit?

________ is what remains when you subtract fixed and variable costs and taxes from revenues.

Why is it best to pay expenses for your business with a check, not with cash?

What are variable costs? How are they broken down?

A(n) ________ is a model or pattern that serves as an example of how a product would look and operate if it were manufactured.

Record keeping for a very small business can be accomplished by a journal and files for storing ________.

Depreciation is the percentage of value of an asset added each year to reflect wear and tear on the asset.

In the phrase I SAID U R + "Other FXs", UR stands for ________.

The cost of material used to make a product and cost of labor used to make the product is associated specifically with a single ________ of sale.

Describe how an entrepreneur should protect his/her financial records.

If a business sells 5,000 units for a total profit of $200,000, what is its profit per unit?

A critical cost for a beginning business is the seed capital.

Start-up investment is the one-time expense of opening a business. It is also called ________.

Explain the concept of payback period.

If a business has total gross profit of $14,720 and total operating costs of $11,500, what is its net profit?

________ is a review of financial and business records to ascertain integrity and compliance with standards and laws, particularly by the U.S. Internal Revenue Service.

The percentage of value of an asset subtracted each year until the value becomes zero, to reflect wear and tear on the asset, is called ________.

Fixed operating costs can change over time.

Entrepreneurs Recognize Opportunities

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Smart Selling and Effective Customer Service

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy and Tactics

Addressing Legal Issues and Managing Risk

Operating for Success

Management, Leadership, and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters

Exam 7: Understanding and Managing Start-Up, Fixed, and Variable Costs

If you sell $2500 worth of product, pay COGS of $800 and other variable costs of $360, what is your gross profit?

________ is what remains when you subtract fixed and variable costs and taxes from revenues.

Why is it best to pay expenses for your business with a check, not with cash?

What are variable costs? How are they broken down?

A(n) ________ is a model or pattern that serves as an example of how a product would look and operate if it were manufactured.

Record keeping for a very small business can be accomplished by a journal and files for storing ________.

Depreciation is the percentage of value of an asset added each year to reflect wear and tear on the asset.

In the phrase I SAID U R + "Other FXs", UR stands for ________.

The cost of material used to make a product and cost of labor used to make the product is associated specifically with a single ________ of sale.

Describe how an entrepreneur should protect his/her financial records.

If a business sells 5,000 units for a total profit of $200,000, what is its profit per unit?

A critical cost for a beginning business is the seed capital.

Start-up investment is the one-time expense of opening a business. It is also called ________.

Explain the concept of payback period.

If a business has total gross profit of $14,720 and total operating costs of $11,500, what is its net profit?

________ is a review of financial and business records to ascertain integrity and compliance with standards and laws, particularly by the U.S. Internal Revenue Service.

The percentage of value of an asset subtracted each year until the value becomes zero, to reflect wear and tear on the asset, is called ________.

Fixed operating costs can change over time.

Entrepreneurs Recognize Opportunities

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Smart Selling and Effective Customer Service

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy and Tactics

Addressing Legal Issues and Managing Risk

Operating for Success

Management, Leadership, and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters