Finance
AQA GCSE Business Studies revision on Finance. Aligned to the AQA GCSE Business 8132 specification. This bank has 35 practice questions on this topic.
Sample questions (3 of 35)
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Question 1
A business has revenue of £120,000, total costs of £75,000. What is its profit?
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Answer: 45000
Profit = 120,000 − 75,000 = £45,000. The simplest finance formula on the spec. Watch out for the question asking 'profit margin' instead (profit ÷ revenue × 100 = 37.5%).
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Question 2
Break-even is the level of output where...
- A) Variable costs are zero
- B) Revenue exactly equals total costs
- C) Profit is at its highest
- D) Fixed costs are paid off
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Answer: Revenue exactly equals total costs
Break-even output = fixed costs ÷ (price per unit − variable cost per unit). Above break-even = profit. Below = loss. Useful for working out 'how many do I need to sell to cover my costs?' before pricing decisions.
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Question 3
A company's fixed costs are £10,000/month. Each unit sells for £20 and costs £5 to make. How many units does it need to sell to break even?
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Answer: 667
Contribution per unit = price − variable cost = £20 − £5 = £15. Break-even units = fixed costs ÷ contribution = 10,000 ÷ 15 = 666.67. Round UP to 667 because you can't sell a fraction of a unit AND need to fully cover the costs.
Want to test yourself on the remaining cards for this topic?
32 more questions on Finance — plus mistakes tracking and spaced repetition across the whole Business Studies spec.