Lesson 5.4.1

5.4.1 Costs, revenue and profit Quiz: OCR Business, Unit 5

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 5.4.1, Costs, revenue and profit: 20 multiple choice questions for the OCR Business (H431), Unit 5: Accounting and finance, written with Revision Ninja.

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The 20 questions

  1. Which type of cost remains unchanged regardless of the business output level?

    • Fixed cost
    • Semi-variable cost
    • Variable cost
    • Marginal cost

  2. What is calculated by multiplying product price by total quantity sold?

    • Total revenue
    • Margin of safety
    • Gross profit
    • Total profit

  3. What formula is used to calculate contribution per unit?

    • Price minus fixed
    • Revenue minus costs
    • Price divided output
    • Price minus variable

  4. A business sells 100 units at £20 each. Total costs are £1,200. What is profit?

    • £3,200
    • £1,200
    • £2,000
    • £800

  5. Which cost includes both a fixed component and a variable component?

    • Direct cost
    • Indirect cost
    • Overhead cost
    • Semi-variable cost

  6. What term describes costs directly linked to the production of a specific product?

    • Indirect costs
    • Direct costs
    • Overhead costs
    • Fixed costs

  7. How is the break-even level of output calculated?

    • Fixed costs / Contribution
    • Variable costs / Contribution
    • Revenue / Price
    • Fixed costs / Price

  8. What is the margin of safety if actual output is 500 units and break-even is 350 units?

    • 500 units
    • 350 units
    • 850 units
    • 150 units

  9. A product sells for £15 and has variable costs of £9 per unit. What is its contribution?

    • £135
    • £0.60
    • £24
    • £6

  10. Which formula is used to calculate gross profit?

    • Sales minus direct costs
    • Operating profit plus tax
    • Revenue minus total expenses
    • Current assets minus liabilities

  11. What measure shows how much current output exceeds the break-even point?

    • Break-even point
    • Profit margin
    • Contribution margin
    • Margin of safety

  12. If fixed costs are £10,000 and contribution per unit is £5, what is the break-even output?

    • 2,500 units
    • 500 units
    • 50,000 units
    • 2,000 units

  13. Which cost is an example of an indirect overhead cost for a manufacturing firm?

    • Raw materials
    • Factory rent
    • Piece-rate wages
    • Packaging materials

  14. Which equation shows the correct way to calculate the total cost of business production?

    • Price times output
    • Fixed times variable
    • Fixed plus variable
    • Revenue minus profit

  15. What happens to total fixed cost per unit as output increases?

    • It decreases
    • It reaches zero
    • It increases
    • It stays constant

  16. Which equation is used to calculate operating profit?

    • Net profit plus tax
    • Revenue minus direct costs
    • Current assets minus inventory
    • Gross profit minus expenses

  17. A business has total revenue of £50,000 and total costs of £60,000. What is the financial outcome?

    • Profit of £10,000
    • Loss of £110,000
    • Loss of £10,000
    • Profit of £50,000

  18. Total contribution equals total revenue minus which cost?

    • Total costs
    • Direct expenses
    • Total variable costs
    • Total fixed costs

  19. If a business increases its selling price while costs stay constant, what happens to break-even output?

    • It falls
    • It stays unchanged
    • It becomes zero
    • It rises

  20. What term describes profit generated from sustainable, core business operations rather than one-off events?

    • Gross profit
    • Low quality profit
    • Capital profit
    • High quality profit

All OCR Business quizzes