Gr 12 Math Lit: Ch 1.5 Cost Price, Selling Price

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What is the primary purpose of a budget?

To analyse financial performance and prepare more accurate future budgets

To report actual expenditure and income over a specific period

To manage cash flow and ensure timely invoicing and collection

To estimate expected costs and income based on historical data (correct)

What is the main goal of matching costs with income?

To ensure that income matches or exceeds costs (correct)

To analyse financial performance

To reduce costs and increase income

To set competitive selling prices

What is the primary use of an income-and-expenditure statement?

To estimate expected costs and income based on historical data

To manage cash flow and ensure timely invoicing and collection

To set competitive selling prices

To analyse financial performance and prepare more accurate future budgets (correct)

What is the main consideration when setting a selling price?

Ensuring that the price is high enough to cover all costs and generate a profit Signup and view all the answers

What is the main benefit of regularly analysing income and expenditure?

Identifying areas where costs can be reduced and income can be increased Signup and view all the answers

What is the main goal of managing cash flow?

To ensure that there is enough cash to cover operating expenses Signup and view all the answers

What is the primary source of income for a business?

Sales of goods or services Signup and view all the answers

What is the break-even point in a business?

The point at which total income equals total costs Signup and view all the answers

What are production costs?

Day-to-day expenses directly related to producing goods or services Signup and view all the answers

Why is determining the correct selling price crucial in a business?

To ensure a profit in the business Signup and view all the answers

What is the formula to calculate profit?

Total Income - Total Costs Signup and view all the answers

What is a financial loss in a business?

A financial loss when total costs exceed total income Signup and view all the answers

What are start-up costs?

One-time expenses incurred to establish a business Signup and view all the answers

What is the significance of the selling price in a business?

To ensure profitability in the business Signup and view all the answers

What type of expenses are electrical appliances and equipment?

Start-Up Costs Signup and view all the answers

Which of the following is NOT a source of income for a business?

Loans from external parties Signup and view all the answers

What is the purpose of determining the break-even point?

To identify when total income equals total costs Signup and view all the answers

What occurs when total costs exceed total income?

A loss is incurred Signup and view all the answers

What type of costs include rent, loan repayments, and utilities?

Monthly Operating Costs Signup and view all the answers

Why is it important to manage cash flow?

To ensure there is enough money to meet financial obligations Signup and view all the answers

What is the difference between total income and total costs?

Profit Signup and view all the answers

What is the purpose of an income-and-expenditure statement?

To compare total income with total costs Signup and view all the answers

What is the primary benefit of creating a budget for a small business?

To ensure profitability by planning for future expenses Signup and view all the answers

What is the key to maintaining profitability in a small business?

Regularly analysing income and expenditure Signup and view all the answers

Why is it important for a small business to manage cash flow effectively?

To ensure there is enough cash to cover operating expenses Signup and view all the answers

What is the primary consideration when setting the selling price of a product?

The cost structure and market conditions Signup and view all the answers

What is the main benefit of regularly reviewing an income-and-expenditure statement?

To identify areas where costs can be reduced and income can be increased Signup and view all the answers

What is the key to achieving profitability in a small business?

Matching costs with income Signup and view all the answers

Which type of cost is directly related to producing goods or services?

Production costs Signup and view all the answers

What is the purpose of determining the break-even point in a business?

To identify the point at which total income equals total costs Signup and view all the answers

What type of expense is a loan repayment?

Monthly operating cost Signup and view all the answers

What is the result when total income exceeds total costs?

Profit Signup and view all the answers

What is the primary benefit of regularly reviewing an income-and-expenditure statement?

To make informed business decisions Signup and view all the answers

What is the significance of setting the correct selling price?

To ensure profitability Signup and view all the answers

What is the purpose of creating a budget for a small business?

To make informed business decisions Signup and view all the answers

What is the key to maintaining profitability in a small business?

Setting the correct selling price Signup and view all the answers

What is the primary benefit of regularly analyzing income and expenditure statements in a small business?

To identify areas where costs can be reduced and income can be increased Signup and view all the answers

What is the main purpose of a budget in a small business?

To estimate expected costs and income based on historical data Signup and view all the answers

What is the main consideration when setting the selling price of a product in a small business?

The market conditions and competition Signup and view all the answers

What is the key to achieving profitability in a small business?

Matching costs with income Signup and view all the answers

What is the primary use of income-and-expenditure statements in a small business?

To analyse financial performance and prepare more accurate future budgets Signup and view all the answers

What is the primary goal of managing cash flow in a small business?

To ensure that there is enough cash to cover operating expenses Signup and view all the answers

Gr 12 Math Lit: Ch 1.5 Cost Price, Selling Price

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Questions and Answers

What is the primary purpose of a budget?

What is the main goal of matching costs with income?

What is the primary use of an income-and-expenditure statement?

What is the main consideration when setting a selling price?

What is the main benefit of regularly analysing income and expenditure?

What is the main goal of managing cash flow?

What is the primary source of income for a business?

What is the break-even point in a business?

What are production costs?

Why is determining the correct selling price crucial in a business?

What is the formula to calculate profit?

What is a financial loss in a business?

What are start-up costs?

What is the significance of the selling price in a business?

What type of expenses are electrical appliances and equipment?

Which of the following is NOT a source of income for a business?

What is the purpose of determining the break-even point?

What occurs when total costs exceed total income?

What type of costs include rent, loan repayments, and utilities?

Why is it important to manage cash flow?

What is the difference between total income and total costs?

What is the purpose of an income-and-expenditure statement?

What is the primary benefit of creating a budget for a small business?

What is the key to maintaining profitability in a small business?

Why is it important for a small business to manage cash flow effectively?

What is the primary consideration when setting the selling price of a product?

What is the main benefit of regularly reviewing an income-and-expenditure statement?

What is the key to achieving profitability in a small business?

Which type of cost is directly related to producing goods or services?

What is the purpose of determining the break-even point in a business?

What type of expense is a loan repayment?

What is the result when total income exceeds total costs?

What is the primary benefit of regularly reviewing an income-and-expenditure statement?

What is the significance of setting the correct selling price?

What is the purpose of creating a budget for a small business?

What is the key to maintaining profitability in a small business?

What is the primary benefit of regularly analyzing income and expenditure statements in a small business?

What is the main purpose of a budget in a small business?

What is the main consideration when setting the selling price of a product in a small business?

What is the key to achieving profitability in a small business?

What is the primary use of income-and-expenditure statements in a small business?

What is the primary goal of managing cash flow in a small business?

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