BM_Remedial Test

Front

What type of cost varies depending on the quantity of products being produced?

Back

Variable cost is a cost that changes in proportion to the good or service that a business produces. Examples include raw materials and labor costs.

Front

What is the result when net sales of goods is less than its cost?

Back

Loss occurs when the total costs exceed the total revenue, indicating that the business is not profitable.

Front

How many days are used when ordinary interest is applied?

Back

Ordinary interest is calculated using a 360-day year.

Front

What is a loan secured by collateral that the borrower is obliged to pay at specified terms?

Back

A mortgage is a type of loan specifically used to purchase real estate, where the property serves as collateral.

Front

Calculate the interest on a loan of P100,000.00 for two years at a simple interest rate of 6.5% per year.

Back

The interest is P13,000.00, calculated using the formula: Interest = Principal x Rate x Time.

Front

Define fixed cost.

Back

Fixed cost is a business expense that remains constant regardless of the level of production or sales.

Front

What is net sales?

Back

Net sales is the total revenue from sales minus returns, allowances, and discounts.

Front

What does break-even mean in business?

Back

Break-even is the point at which total revenue equals total costs, resulting in neither profit nor loss.

Front

What is amortization?

Back

Amortization is the process of paying off a debt over time through regular payments.

Front

What is the formula for calculating simple interest?

Back

Simple Interest = Principal x Rate x Time.