Unit 3.3 True or False Quiz

First Name

Last Name

Total revenue for the sales of a product is calculated by multiplying the number of units sold by the selling price. (1 point )

• false.
• true

To calculate total costs of output, both total fixed costs and total variable costs are added together. (1 point )

• false.
• true

The level of profit or loss of a business can be calculated by using deducting the total cash outflows from the total cash inflows. (1 point )

• false
• true.

Direct costs refer to the costs that are clearly identified with the production of a specific good or service. (1 point )

• false.
• true

Fixed costs do not change due to changes in the level of output. (1 point )

• false.
• true

Costs that change in proportion to the amount of output produced are known as indirect costs. (1 point )

• false
• true.

The available revenue for a business comes from money generated from the sale of goods and services and non-trading revenue. (1 point )

• false.
• true

Costs that are not directly incurred in the production process are known as indirect costs. (1 point )

• false.
• true