Question detail
MetroMove serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?5,436, sales of 466 units, and a 9% change in costs or demand. Which option best applies Explain revenue, costs, profit and loss?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Financial terms and calculations
Question
- A. Use revenue, loss, profit to judge net profit margin, customers impact, and the business objective in Costs, revenue, profit and loss.
- B. Give only a definition of Financial terms and calculations without using the case evidence.
- C. Treat cash flow and profit 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 revenue, loss, profit to judge net profit margin, customers impact, and the business objective in Costs, revenue, profit and loss.
Explanation
Choose this response because Use revenue, loss, profit to judge net profit margin, customers impact, and the business objective in Costs, revenue, profit and loss. The case evidence gives ?6,936, 466 units, and 9%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse cash flow and profit, miss the customers, or ignore the business objective.
Common mistake
Costs, revenue, profit and loss common mistake 1
Giving a vague answer instead of directly addressing: Explain revenue, costs, profit and loss..
Answer by clearly explaining how to explain revenue, costs, profit and loss..
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