A firm’s funds and costs
Answers are for parents and teachers.
1
A mill uses equipment worth 360 mln so‘m for 8 years. What is the annual depreciation charge in so‘m?
45000000
2
A firm made 5 000 units a month and spent 40 mln so‘m on fixed and 110 mln so‘m on variable costs. What is the average cost in so‘m?
30000
3
For one small shop in your neighbourhood write three fixed and three variable types of cost.
Example: fixed — rent, insurance, an advertising contract; variable — goods bought for sale, packaging, the seller’s piece-rate pay.
4
Explain the “turnover” of working capital step by step using a bakery.
Money buys flour and gas (resources); bread is baked from them (finished goods); the bread is sold and money comes back — the cycle starts again.
5
A fixed asset costs 24 mln so‘m and is used for 6 years. How many so‘m will the depreciation fund hold after three years?
12000000