4 Factors And Costs👑

Question 1

What is enterprise?

Answer 1

An idea on what your business will be

Question 2

What is capital?

Answer 2

Investment into your business, the money required to start and keep the business running

Question 3

What is land?

Answer 3

Where the business is located and also raw materials

Question 4

What is labour?

Answer 4

Workers, the amount of them and their skills

Question 5

What’s opportunity cost?

Answer 5

The loss of one opportunity when another one is chosen

Question 6

What is a variable cost?

Answer 6

The money you pay each week with every customer

Question 7

What are fixed costs?

Answer 7

Things which have to be payed each week, no matter how many customers you get

Question 8

Examples of fixed costs are…

Answer 8

Loan repayments
Wages
Repairs
Light and heating

Question 9

Example of variable costs, in a hairdressers for example, are..

Answer 9

Shampoo
Conditioner
Water

Question 10

What is revenue?

Answer 10

How much money you take in

Question 11

What is revenue sometimes referred to as?

Answer 11

Turnover

Question 12

How do you calculate profit?

Answer 12

Subtracting total costs by total revenue

Question 13

How do you calculate total revenue?

Answer 13

Quantity sold times by the average price

Question 14

How do you work out break even point?

Answer 14

Fixed costs divided by contribution

Question 15

How do you work out contributions?

Answer 15

Selling price - variable costs

Question 16

On a break even chart, how would you find the BEP?

Answer 16

Where the lines from total costs and revenue meet

Question 17

On a break even chart, where would you find the profit?

Answer 17

In between the total costs and revenue lines, at the end of them

Question 18

On a break even chart, where would you find variable costs?

Answer 18

From the fixed costs line to the total costs line

Question 19

On a break even chart, where would you find the loss?

Answer 19

In between the total costs and revenue lines, at the start of them