Questions and answers for exam Preparation

MCQs

Total Questions : 932 | Page 4 of 94 pages

Question 31. First Benchmark Publishing’s gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the company is within the 40% tax bracket, determine the percent of sales is their profit after taxes?

21 %
20 %
19 %
18 %

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Answer: Option A. -> 21 %

Question 32. The construction estimate of a project is used by:

The owner of the facility
The consulting architect/engineer
The contractor of the project
All of these

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Answer: Option D. -> All of these

Question 33. Pick up the correct statement regarding financial statement analysis from the following.

Final analysis always involves the use of various financial statements i.e., balance sheet and income statement
The balance sheet is the summary of assets, liabilities and owner's equity of business at a point in time
The income statement is the summary of revenues and expenses of a firm over a particular period of time
All the above

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Answer: Option D. -> All the above

Question 34. Pick up the correct statement from the following:

A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed
In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project
As the discount rate increases, the net present value profile slopes downward to the right
All of these

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Answer: Option D. -> All of these

Question 35. Pick up the correct statement from the following:

An annuity is a series of equal payments occurring at equal period of time
Annuity is called an equal payment or uniform payment series
An annuity may have periods of time of any length but should always be of equal length
All the above

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Answer: Option D. -> All the above

Question 36. Pick up the correct method adopted for developing the approximate or conceptual estimates from the following:

Base unit method
Cost per function method
Cost per square metre
All of these

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Answer: Option D. -> All of these

Question 37. Pick up the element of the cost from the following:

Direct material
Direct labour
Over head
All of these

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Answer: Option D. -> All of these

Question 38. Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

Liquidity ratio
Financial leverage ratio
Activity ratio
None of these

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Answer: Option D. -> None of these

Question 39. Pick up the correct statement from the following:

Engineering economy is a collection of mathematical techniques which simplify economic comparisons
Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one
For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy
All of these

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Answer: Option D. -> All of these

Question 40. Pick up the correct statement from the following:

Over head rate = total over head in rupees for period/Direct labour in rupees for period
Over head cost per unit = Overhead ratio × direct labour cost/unit
Both (A) and (B)
Neither (A) nor (B)

Discuss Question

Answer: Option C. -> Both (A) and (B)