BTEC Level 2 Unit 2 – Finance Exam
Questions and Answers Latest 2025
Fixed Cost - - -
correct answer ✅A Cost that doesn't vary with a change in output
Variable Cost - - -
correct answer ✅A cost that does vary with a change in output
(Costs of One Unit x Number of Units Sold)
Revenue - - -
correct answer ✅The amount the business receives in sales
(Another name for sales)
Operating Cost (Running Cost) - - -
correct answer ✅The ongoing costs of a business
Breakeven - - -
correct answer ✅The point at which Costs equal revenue
Cash Inflow - - -
correct answer ✅Money that enters a business (Loans, Sales,
Share Capital)
, BTEC Level 2 Unit 2 – Finance Exam
Questions and Answers Latest 2025
Total Cost - - -
correct answer ✅Fixed Costs + Variable Costs
Profit - - -
correct answer ✅Revenue - Expenditure (or Total Cost)
Costs of Sales - - -
correct answer ✅The costs of materials to produce the units sold
Area of Loss - - -
correct answer ✅Green shaded area
Area of Profit - - -
correct answer ✅Green Shaded area
Questions and Answers Latest 2025
Fixed Cost - - -
correct answer ✅A Cost that doesn't vary with a change in output
Variable Cost - - -
correct answer ✅A cost that does vary with a change in output
(Costs of One Unit x Number of Units Sold)
Revenue - - -
correct answer ✅The amount the business receives in sales
(Another name for sales)
Operating Cost (Running Cost) - - -
correct answer ✅The ongoing costs of a business
Breakeven - - -
correct answer ✅The point at which Costs equal revenue
Cash Inflow - - -
correct answer ✅Money that enters a business (Loans, Sales,
Share Capital)
, BTEC Level 2 Unit 2 – Finance Exam
Questions and Answers Latest 2025
Total Cost - - -
correct answer ✅Fixed Costs + Variable Costs
Profit - - -
correct answer ✅Revenue - Expenditure (or Total Cost)
Costs of Sales - - -
correct answer ✅The costs of materials to produce the units sold
Area of Loss - - -
correct answer ✅Green shaded area
Area of Profit - - -
correct answer ✅Green Shaded area
