Day: February 18, 2018

Business Studies Multiple Choice Question – 18 February 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which one of the following is the correct definition of break even?

Select ONE answer only:

  1. When the quantity sold equals the quantity produced to sell
  2. When fixed costs equal variable costs
  3. When total quantity equals total costs
  4. When total revenue equals total costs
  5. When total fixed costs equals total variable costs

Explain one disadvantage to a business of using break-even analysis?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – Break even is the output or sales level at which a business’s total revenue equals its total costs (ie fixed and variable costs). Up to this point a loss will be made. After this point the business will make a profit.

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