Costs, Revenue and Profit Exam Questions

Costs, Revenue and Profit: three questions to try now

Real past-paper questions, the answer key from the mark scheme, and the explanation that goes with it. No account needed to answer them.

What this practice covers

These questions are drawn from past Edexcel IGCSE papers. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.

Practice is free. You need an account only so your progress and your mistakes are still there next time.

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What examiners see students get wrong here

These are the errors that cost marks on costs, revenue and profit, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.

• Confusing revenue with profit. Revenue is money coming in; profit is what is left after costs.
• Treating raw materials as a fixed cost, or rent as a variable cost.
• Forgetting that fixed costs must still be paid when output is zero.
• Using the wrong formula: AC = TC ÷ output, not TC × output.
• Forgetting to multiply variable cost per unit by the number of units.
• Saying break-even means the firm is doing badly, it means profit is exactly zero.
• Assuming every firm wants maximum profit.

Revise it first

If any of the above is unfamiliar, work through the notes before practising: Costs, Revenue and Profit revision notes.