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MCQs

Total Questions : 163 | Page 4 of 17 pages
Question 31. The sum of returned working capital and net initial investment is divided by 2 to calculate
  1.    increase in operating income
  2.    average investment over five years
  3.    average capital invested
  4.    average rate of return
 Discuss Question
Answer: Option B. -> average investment over five years
Answer: (b).average investment over five years
Question 32. The project's expected monetary loss or gain by discounting all cash outflows and inflows, using required rate of return is classified as
  1.    net present value
  2.    net future value
  3.    net discounted value
  4.    net recorded cash value
 Discuss Question
Answer: Option A. -> net present value
Answer: (a).net present value
Question 33. The rate of required return to cover the risk of investment, in absence of inflation is classified as
  1.    real rate of return
  2.    required rate of return
  3.    nominal rate of return
  4.    none of above
 Discuss Question
Answer: Option A. -> real rate of return
Answer: (a).real rate of return
Question 34. Annual earned income is divided from a project by capital invested to calculate
  1.    accrual accounting rate of return
  2.    returned working capital
  3.    increase in expected average annual
  4.    decrease in expected average annual
 Discuss Question
Answer: Option A. -> accrual accounting rate of return
Answer: (a).accrual accounting rate of return
Question 35. The horizontally across dimension of cost analysis is also called
  1.    project dimension
  2.    accounting-period dimension
  3.    back-flush accounting dimension
  4.    lean accounting dimension
 Discuss Question
Answer: Option A. -> project dimension
Answer: (a).project dimension
Question 36. An approach in which the company under-costs it's one product and over-costs at least one product is classified as
  1.    service-cost across subsidizing
  2.    product-price cross subsidizing
  3.    product-cost cross subsidizing
  4.    product cross subsidizing
 Discuss Question
Answer: Option C. -> product-cost cross subsidizing
Answer: (c).product-cost cross subsidizing
Question 37. In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as
  1.    different task
  2.    purpose cost
  3.    an activity
  4.    an allocation cost
 Discuss Question
Answer: Option C. -> an activity
Answer: (c).an activity
Question 38. In an activity based costing implementation, the product's diverse demand is based on
  1.    batch size
  2.    complexity
  3.    process steps
  4.    all of above
 Discuss Question
Answer: Option D. -> all of above
Answer: (d).all of above
Question 39. The budgeted total cost in indirect cost pool, is divided by budgeted total quantity of the cost allocation base, is calculated by
  1.    budgeted direct cost rate
  2.    budgeted indirect cost rate
  3.    expected indirect cost rate
  4.    direct budget percentage
 Discuss Question
Answer: Option B. -> budgeted indirect cost rate
Answer: (b).budgeted indirect cost rate
Question 40. The costs of all the activities for individual products or services can be called
  1.    purpose level costs
  2.    output-unit level costs
  3.    input-unit level costs
  4.    activity level costs
 Discuss Question
Answer: Option B. -> output-unit level costs
Answer: (b).output-unit level costs

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