Sales, Revenue and Costs

Fixed costs vary directly with output.

True

False

Sales revenue is the value of all the output sold.

True

False

Total cost is only determined by fixed costs.

True

False

Fixed costs, such as rent and utilities, vary directly with output levels and change based on the number of units produced or sold.

True

False

Calculating sales revenue involves adding the selling price to the quantity sold, resulting in the total value of all sales for a business.

True

False

Sales volume may be a more relevant measure for businesses manufacturing and selling physical products like cars, as it provides a clear indication of the number of units sold.

True

False

Variable costs, like raw materials, are not impacted by the level of output produced and remain constant regardless of the number of units manufactured or sold.

True

False

For supermarkets, focusing on sales revenue is more meaningful than sales volume, as the value of all output sold is a more significant metric.

True

False