Practise using finance evidence to choose funding sources, complete cash-flow and break-even calculations, and interpret accounts for decisions.
Lavender, a Malaysian business, started with bakery, patisserie and takeaway shops. It has now developed into several other businesses. L.café is a self-serve café selling a variety of cakes and drinks. L.bistro is a casual dining place with a selection of Asian foods. L.table is a formal restaurant that uses high quality and organic ingredients.
(Source adapted from: https://www.lavender.com.my/about-us-c1kfx)
Which one of the following would be a source of finance that could be used for a cash flow problem?
Select one answer.
Venture capital
Overdraft
Debenture
Leasing
Which one of the following is an example of a fixed cost for Lavender?
Select one answer.
Flour used in the cakes
Packaging used for Lavender's cakes
Sugar used in production
Rent for Lavender's businesses
Lavender calculates the cost of the cakes it makes. The weekly fixed cost is
759 MYR. The variable cost per cake is 4.70 MYR.
Calculate the total cost of selling 1,650 cakes in a week.
Select one answer.
2413.70
3567.30
7755.00
8514.00
Define the term short-term finance.
In 2023, the monthly minimum wage in Portugal was €820.00
In 2024, the government increased this by 3.6%.
Analyse the importance of cash to the success of Ocean Vibes.
The Better Toy Store (TBTS) is a children's toy shop. TBTS has three shops in Singapore. Two of the shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a website for customers looking to buy toys online.
TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are environmentally friendly.
Which one of the following is a variable cost?
Select one answer.
Rent paid
Management salaries
Insurance agreed
Raw materials
TBTS buys its balloon packs from a local supplier for 7.20 Singapore Dollars (SGD) a pack. It sells them to customers for 16.90 SGD.
Which one of the following is the markup on a pack of balloons?
Select one answer.
7.20%
9.70%
69.84%
134.72%
Figure 1 is a financial extract from TBTS based on the sale of 160 wooden toy carts.
Figure 1
Calculate the total costs for TBTS of making 160 wooden toy carts. You are advised to show your working.
Rabanne aims to be the best provider of fragrances for men and women throughout the world. Therefore, it uses a range of methods to make sure it will achieve this aim.
Explain one reason why businesses use statements of comprehensive income when making decisions.