Question detail
SwiftServe serves premium buyers while launching a product; the case evidence includes labour productivity of ?9,412, sales of 787 units, and a 21% change in costs or demand. Which option best applies Distinguish variable costs, fixed costs and total costs?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Business planning
Question
- A. Use variable costs, total costs, fixed costs to judge supplier lead time, customers impact, and the business objective in Basic financial terms.
- B. Give only a definition of Business planning without using the case evidence.
- C. Treat fixed and variable costs as identical and ignore the effect on customers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use variable costs, total costs, fixed costs to judge supplier lead time, customers impact, and the business objective in Basic financial terms.
Explanation
This option works because Use variable costs, total costs, fixed costs to judge supplier lead time, customers impact, and the business objective in Basic financial terms. The case evidence gives ?10,912, 787 units, and 21%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the customers, or ignore the business objective.
Common mistake
Basic financial terms common mistake 1
Giving a vague answer instead of directly addressing: Distinguish variable costs, fixed costs and total costs..
Answer by clearly explaining how to distinguish variable costs, fixed costs and total costs..
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