Profit

What is a variable expense?

• A fixed cost that remains the same each month, like rent.

• A cost that can change, such as groceries or car repairs.

• An expense that is always paid in cash, like utilities.

• A one-time payment for a service, like a subscription.

What is a fixed expense?

• A cost that varies each month, like groceries.

• A cost that does not change, such as rent or a monthly subscription.

• An expense that is only incurred once a year.

• A cost that can be easily adjusted based on income.

How do you calculate profit?

• Profit = Total Income + Total Costs.

• Profit = Total Income - Total Costs.

• Profit = Total Income / Total Costs.

• Profit = Total Income * Total Costs.

Why do people deposit money in banks?

• To earn high interest rates on their savings.

• To keep their money in a safe place.

• To avoid paying taxes on their income.

• To have easy access to cash for daily expenses.

What is the selling price?

• The cost of producing a product.

• The amount of money received from selling a product.

• The price set by the manufacturer.

• The total expenses incurred in selling a product.

If Ann bought a lamp for $15 and sold it for $29, what was her profit?

• $10

• $12

• $14

• $16

What is interest?

• Interest is a fee paid to banks for managing accounts.

• Interest is the money paid to banks for borrowing money or the money earned on deposits.

• Interest is a tax imposed on savings.

• Interest is the profit made from selling investments.

What is profit?

• Profit is the total income earned by a business before any expenses are deducted.

• Profit is the amount of money a person makes after subtracting all costs from the total income.

• Profit is the difference between revenue and expenses, but only for non-profit organizations.

• Profit is the amount of money a person spends on goods and services.

Why is it important to track expenses?

• It allows individuals to spend more freely without concern.

• Tracking expenses helps individuals understand where their money goes and manage their finances better.

• It is only necessary for businesses, not individuals.

• It helps in avoiding all types of financial investments.

What is a budget?

• A budget is a plan that outlines expected income and expenses over a certain period.

• A budget is a document that tracks past spending without future projections.

• A budget is a financial statement that only includes income.

• A budget is a plan that focuses solely on reducing expenses.