Btec Business Revision Exam
Questions and Answers 100% Pass
Breakeven - CORRECT ANSWER-When revenue and expenditure are the same.
there is no profit or loss
variable costs - CORRECT ANSWER-raw materials, change as output increases
margin of safety - CORRECT ANSWER-is the amount by which sales would have
to fall before the break-even point is reached
total costs - CORRECT ANSWER-fixed costs plus variable costs
break-even point - CORRECT ANSWER-when a business has made enough
money through product sales to cover the cost of making the product
selling price - CORRECT ANSWER-total revenue divided by maximum number
of products
increasing the price - CORRECT ANSWER-break even point falls
reduce the price - CORRECT ANSWER-break even point becomes higher
break even analysis - CORRECT ANSWER-planning tool that helps businesses to
make the right decisions and increase their chances of success
, benefits of break even analysis - CORRECT ANSWER-business knows the fixed
and variable costs linked to a product.
the business can set the best price for a product.
it allows the business to set a margin of safety.
risks of ignoring breakeven analysis - CORRECT ANSWER-the business does not
know the costs of production and running costs.
the business does not know how many items it must sell to make a profit.
the business may make a loss without realising or knowing why.
break even point will change - CORRECT ANSWER-if costs change or if the
selling price changes
if costs fall - CORRECT ANSWER-the breakeven point is lower so the business
makes a profit
the lower the breakeven point - CORRECT ANSWER-the fewer the sales needed
to make a profit
total sales revenue formula - CORRECT ANSWER-number of sales times price
per unit
to make a profit - CORRECT ANSWER-revenue must be higher than expenditure
profit formula - CORRECT ANSWER-revenue take away expenditure
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers 100% Pass
Breakeven - CORRECT ANSWER-When revenue and expenditure are the same.
there is no profit or loss
variable costs - CORRECT ANSWER-raw materials, change as output increases
margin of safety - CORRECT ANSWER-is the amount by which sales would have
to fall before the break-even point is reached
total costs - CORRECT ANSWER-fixed costs plus variable costs
break-even point - CORRECT ANSWER-when a business has made enough
money through product sales to cover the cost of making the product
selling price - CORRECT ANSWER-total revenue divided by maximum number
of products
increasing the price - CORRECT ANSWER-break even point falls
reduce the price - CORRECT ANSWER-break even point becomes higher
break even analysis - CORRECT ANSWER-planning tool that helps businesses to
make the right decisions and increase their chances of success
, benefits of break even analysis - CORRECT ANSWER-business knows the fixed
and variable costs linked to a product.
the business can set the best price for a product.
it allows the business to set a margin of safety.
risks of ignoring breakeven analysis - CORRECT ANSWER-the business does not
know the costs of production and running costs.
the business does not know how many items it must sell to make a profit.
the business may make a loss without realising or knowing why.
break even point will change - CORRECT ANSWER-if costs change or if the
selling price changes
if costs fall - CORRECT ANSWER-the breakeven point is lower so the business
makes a profit
the lower the breakeven point - CORRECT ANSWER-the fewer the sales needed
to make a profit
total sales revenue formula - CORRECT ANSWER-number of sales times price
per unit
to make a profit - CORRECT ANSWER-revenue must be higher than expenditure
profit formula - CORRECT ANSWER-revenue take away expenditure
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
