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MCQs

Total Questions : 398 | Page 36 of 40 pages
Question 351. In a manufacturing industry, breakeven point occurs, when the___________________?
  1.    Total annual rate of production equals the assigned value
  2.    Total annual product cost equals the total annual sales
  3.    Annual profit equals the expected value
  4.    Annual sales equals the fixed cost
 Discuss Question
Answer: Option B. -> Total annual product cost equals the total annual sales
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 352. Gross earning is equal to the total income minus___________________?
  1.    Total product cost
  2.    Fixed cost
  3.    Income tax
  4.    None of these
 Discuss Question
Answer: Option A. -> Total product cost
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 353. Depreciation is ____________________ in profit with time?
  1.    Decrease
  2.    Increase
  3.    No change
  4.    None of these
 Discuss Question
Answer: Option A. -> Decrease
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 354. Functional depreciation of an equipment is the measure of decrease in its value due to its _________________?
  1.    Ageing
  2.    Wear and tear
  3.    Obsolescence
  4.    Breakdown or accident
 Discuss Question
Answer: Option C. -> Obsolescence
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 355. Manufacturing cost in a chemical company does not include the____________________?
  1.    Fixed charges
  2.    Plant overheads
  3.    Direct products cost
  4.    Administrative expenses
 Discuss Question
Answer: Option D. -> Administrative expenses
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 356. The payback method for the measurement of return on investment___________________?
  1.    Gives a correct picture of profitability
  2.    Underemphasises liquidity
  3.    Does not measure the discounted rate of return
  4.    Takes into account the cash inflows after the recovery of investments
 Discuss Question
Answer: Option C. -> Does not measure the discounted rate of return
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 357. _________________ of depreciation calculation accounts for the interest on investment?
  1.    Straight line method
  2.    Declining balance
  3.    Both A. and B.
  4.    Neither A. nor B.
 Discuss Question
Answer: Option D. -> Neither A. nor B.
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 358. An investment of Rs. 1000 is carrying an interest of 10% compounded quarterly. The value of the investment at the end of five years will be ________________?
  1.    1000 (1 + 0.1/4)20
  2.    1000 (1 + 0.1)20
  3.    1000 (1 + 0.1/4)5
  4.    1000 (1 + 0.1/2)5
 Discuss Question
Answer: Option A. -> 1000 (1 + 0.1/4)20
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 359. Nominal and effective interest rates are equal, when the interest is compounded______________?
  1.    Quarterly
  2.    Semi-annually
  3.    Annually
  4.    In no case, they are equal
 Discuss Question
Answer: Option C. -> Annually
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!
Question 360. _____________ method for profitability evaluation of a project does not account for investment cost due to land ?
  1.    Net present worth
  2.    Pay out period
  3.    Discounted cash flow
  4.    Rate of return on investment
 Discuss Question
Answer: Option B. -> Pay out period
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

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