Lakshya Education MCQs

Question: In a manufacturing industry, break even point occurs, when the
A.Total annual rate of production equals the assigned value
B.Total annual product cost equals the total annual sales
C.Annual profit equals the expected value
D.Annual sales equals the fixed cost
Answer: Option B

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More Questions on This Topic :

Question 1. If the interest rate of 10% per period is compounded half yearly, the actual annual return on the principal will be __________ percent.
  1.    10
  2.    20
  3.    >20
  4.    < 20
Answer: Option C
Question 2. The inventory of raw materials included in the working capital is usually about __________ months supply of raw materials valued at delivery prices.
  1.    One
  2.    Three
  3.    Six
  4.    Twelve
Answer: Option A
Question 3. The total investment in a project is Rs. 10 lakhs and the annual profit is 1.5 lakhs. If the project life is 10 years, then the simple rate of return on investment is
  1.    15%
  2.    10%
  3.    1.5%
  4.    150%
Answer: Option C
Question 4. Following the six-tenth factor rule, if a log-log plot of capacity of the equipment vs. cost of the equipment is made, then a straight line is obtained, whose slope is equal to
  1.    0.1
  2.    0.6
  3.    0.2
  4.    0.8
Answer: Option B
Question 5. Depreciation is __________ in profit with time.
  1.    Decrease
  2.    Increase
  3.    No change
  4.    None of these
Answer: Option A
Question 6. Out of the following, the depreciation calculated by the __________ method is the maximum.
  1.    Diminishing balance
  2.    Straight line
  3.    Sum of the years digit
  4.    Sinking fund
Answer: Option A

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