Operations (OP) Pre-test questions &
answers 2023/2024
Which of the following is not considered an operating expense: - ANSWER-Cost of goods
In determining an appropriate selling price for goods and services, a business calculates its operating
expenses in order to find the - ANSWER-break-even point.
To conduct a break-even analysis of a specific product, a business must know the price per unit, cost per
unit, and the total - ANSWER-fixed costs.
Which of the following would be the easiest business expense to control: - ANSWER-Inventory reserve
Calculate the amount a small business can save in payroll expense for a four-week period by hiring four
part-time employees who each work five hours a day, five days a week, for $8.50 an hour to replace two
full-time employees who each earn $475 a week. - ANSWER-$400
answers 2023/2024
Which of the following is not considered an operating expense: - ANSWER-Cost of goods
In determining an appropriate selling price for goods and services, a business calculates its operating
expenses in order to find the - ANSWER-break-even point.
To conduct a break-even analysis of a specific product, a business must know the price per unit, cost per
unit, and the total - ANSWER-fixed costs.
Which of the following would be the easiest business expense to control: - ANSWER-Inventory reserve
Calculate the amount a small business can save in payroll expense for a four-week period by hiring four
part-time employees who each work five hours a day, five days a week, for $8.50 an hour to replace two
full-time employees who each earn $475 a week. - ANSWER-$400
