Question detail
FreshFork serves price-sensitive customers while using retained profit; the case evidence includes break-even output of ?7,362, sales of 877 units, and a 15% change in costs or demand. Which option best applies Explain revenue, costs, profit and loss in a business planning context?
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 revenue, loss, profit to judge supplier lead time, owners 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 owners.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use revenue, loss, profit to judge supplier lead time, owners impact, and the business objective in Basic financial terms.
Explanation
This option works because Use revenue, loss, profit to judge supplier lead time, owners impact, and the business objective in Basic financial terms. The case evidence gives ?8,862, 877 units, and 15%, 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 owners, or ignore the business objective.
Common mistake
Basic financial terms common mistake 1
Giving a vague answer instead of directly addressing: Explain revenue, costs, profit and loss in a business planning context..
Answer by clearly explaining how to explain revenue, costs, profit and loss in a business planning context..
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