MCQ

Question 1 Which of the following states how a variable cost behaves as volume changes? a. remains constant in total and remains constant per unit b. remains constant in total and changes per unit c. changes in total and remains constant per unit d. changes in total and changes per unit

Question 2 Indicate whether the following statement is true or false: The sales managers salary, R127,000 annually, a direct cost. a. True b. False

Question 3

Identify the asset from the list below:

Cash

Creditors

Notes payable

Bank loan

QUESTION 5

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as

Capital

Profit

Liabilities

Assets

QUESTION 6

Which of the following is NOT a factor influencing capital need?

The type of industry

The length of the working capital cycle

Forecasted production figures

External factors

LONG QUESTIONS

QUESTION 1 Discuss the difference between: fixed and variable costs

QUESTION 2

You decide to start a food truck with Mexican food as your speciality. A list of things you will need include:

A food truck

Kitchen appliances

Kitchenware

Cutlery

Food materials

Signage boards

Outline at least five important questions you need to ask yourself once you have decided on all the required fixed and current assets for your enterprise.