Lakshya Education MCQs

Question: __________ of depreciation calculation does not take into account the interest on investments.
A.Present worth method
B.Sinking fund method
C.Sum of the years-digits method
D.All of the above
Answer: Option C

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More Questions on This Topic :

Question 1. If an amount R is paid at the end of every year for 'n' years, then the net present value of the annuity at an interest rate of i is
  1.    R[((1 + i)n - 1)/i]
  2.    [((1 + i)n - 1)/i(1 + i)n]
  3.    R(1 + i)n
  4.    R/(1 + i)n
Answer: Option B
Question 2. Expenditure on research and development (R & D) is categorised as the __________ , while making an estimate of the total product cost for a chemical plant.
  1.    Overhead cost
  2.    Fixed expenses
  3.    General expenses
  4.    Direct production cost
Answer: Option C
Question 3. Pick out the wrong statement.
  1.    Gross margin = net income - net expenditure
  2.    Net sales realisation (NSR) = Gross sales - selling expenses
  3.    At break even point, NSR is more than the total production cost
  4.    Net profit = Gross margin - depreciation - interest
Answer: Option C
Question 4. Which of the following elements is not included in the scope of market analysis?
  1.    Competition from other manufactures
  2.    Product distribution
  3.    Opportunities
  4.    Economics
Answer: Option D
Question 5. Total product cost of a chemical plant does not include the __________ cost.
  1.    Market survey
  2.    Operating labour, supervision and supplies
  3.    Overhead and utilities
  4.    Depreciation, property tax and insur-rance
Answer: Option A
Question 6. Optimum number of effects in a multiple effect evaporator is decided by the
  1.    Cost benefit analysis
  2.    Floor area availability
  3.    Terminal parameters
  4.    Evaporation capacity required
Answer: Option A

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