BUSINESS SIMULATION TEST
QUESTIONS WITH CORRECT
ANSWERS
Sales - Correct Answers -The amount of money being brought in due to selling their
product. The same as revenue.
Cost of Goods Sold - Correct Answers -profit/ number of units produced *unit cost of
production
Gross Margin - Correct Answers -revenue--cost of goods sold
Quality Management Expense - Correct Answers -money used to maintain quality of
products
Retained Earnings - Correct Answers -profits maintained in business for further
expansion
Profit - Correct Answers -amount of money earned after taxes and expenses are paid
Asset - Correct Answers -anything of value to a business ex. land, building, money
Inventory Expense - Correct Answers -money you pay to keep left over products in
storage
Sales Force Expense - Correct Answers -number of sales persons * 15000
Cash Flow Statement - Correct Answers -movement of money into and out of a
business measured over a specific period of time; sources and uses of funds
Product Development - Correct Answers -money spent to advance and improve
products in future
Market Research - Correct Answers -researching consumer needs and analyzing
economic factors
Interest Expense - Correct Answers -the amount it costs you to borrow money
Depriciation - Correct Answers -decrease in plant capacity due to wear and tear on
equipment
QUESTIONS WITH CORRECT
ANSWERS
Sales - Correct Answers -The amount of money being brought in due to selling their
product. The same as revenue.
Cost of Goods Sold - Correct Answers -profit/ number of units produced *unit cost of
production
Gross Margin - Correct Answers -revenue--cost of goods sold
Quality Management Expense - Correct Answers -money used to maintain quality of
products
Retained Earnings - Correct Answers -profits maintained in business for further
expansion
Profit - Correct Answers -amount of money earned after taxes and expenses are paid
Asset - Correct Answers -anything of value to a business ex. land, building, money
Inventory Expense - Correct Answers -money you pay to keep left over products in
storage
Sales Force Expense - Correct Answers -number of sales persons * 15000
Cash Flow Statement - Correct Answers -movement of money into and out of a
business measured over a specific period of time; sources and uses of funds
Product Development - Correct Answers -money spent to advance and improve
products in future
Market Research - Correct Answers -researching consumer needs and analyzing
economic factors
Interest Expense - Correct Answers -the amount it costs you to borrow money
Depriciation - Correct Answers -decrease in plant capacity due to wear and tear on
equipment
