Older MCQs might not have the typical A, B, C,
D
choices. They
have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such
combinations to the answer.
A
1, 2 and 3 are correct
B
1 and 2 only are correct
C
2 and 3 only are correct
D
1 only is correct
the calculation of revenue, gross profit, gross profit margin, profit for the year (net profit), working capital and mark-up percentage 1 Revenue (Sales or Turnover) = Selling price per unit × Number of units sold 2 Gross profit = Revenue – Cost of Sales (the cost of purchasing inventory) 3 Gross profit margin (%) = Gross profit ÷ Revenue × 100 4 Net profit/net loss for the year = Gross profit – Expenses 5 Working capital = Current assets – Current liabilities 6 Mark-up percentage = (Average Selling Price – Unit Cost) ÷ Unit Cost
identifying the different types of costs used in trade, commerce and production: advertising, bank charges, commission, customs duties, inventory, labour, packaging, transport, utilities and warehousing
the methods to improve sales turnover, profit, mark-up and working capital, e.g. reducing expenses, increasing mark-up, changing prices, improving advertising, introducing new products in given situations
