BTEC UNIT 2: FINANCE FOR BUSINESS - LA A

What is a common utility cost for businesses?

• Water, gas, and electricity

• Travel, meals, and lodging

• Software, hardware, and internet

• Vehicles, fuel, and insurance

What is an example of a start-up cost for a pizzeria?

• Pizza oven

• Delivery service

• Online ordering system

• Franchise fee

What must Nico pay for regardless of the number of customers?

• Ingredients for pizza

• Gas to run the pizza ovens

• Seasonal staff wages

• Marketing campaigns

Which of the following is NOT a running cost?

• Gas for the pizza oven

• Flour for the pizza dough

• Buying a new oven

• Water for cleaning

What is the relationship between variable costs and production levels?

• Variable costs decrease as production increases

• Variable costs remain constant regardless of production

• Variable costs increase as production increases

• Variable costs are unrelated to production levels

Which of the following would NOT be considered a variable cost for a pizzeria?

• Cheese for pizzas

• Dough for pizza bases

• Monthly lease payment

• Tomato sauce for pizzas

What is the formula used to calculate revenue for each item sold?

• Quantity sold × Cost price

• Quantity sold × Selling price

• Quantity sold + Selling price

• Quantity sold - Cost price

What is the role of investment income for businesses?

• It reduces operational costs

• It comes from people buying shares

• It increases employee wages

• It decreases product prices

What is the purpose of advertising Nico's Pizzeria on JUST EAT?

• To reduce costs

• To increase sales

• To hire more staff

• To change the menu

Which of the following is a variable cost?

• Rent and business rates

• Utility bills

• Staff wages

• Telecommunication links