Capital Budgeting and Inflation MCQs with Answers PDF Download – Test 214

MCQ 1066: The decrease in purchasing power of any monetary unit such as euro, dollars etc. is classified as:

1. net investment parity
2. inflation
3. purchasing parity
4. buying parity

MCQ 1067: If the total setup cost is $35000 and fixed setup cost is $19000, then the variable fixed cost would be:

1. $16,000
2. $54,000
3. $64,000
4. $74,000

MCQ 1068: If the actual input quantity is 300 units and the budgeted input quantity is 100 units, then the efficiency variance will be:

1. 600 units
2. 200 units
3. 400 units
4. 500 units

MCQ 1069: The book value of existing equipment is a historical cost and not necessary for deciding equipment replacement, thus it can be considered as:

1. operating cost
2. sunk cost
3. in-house cost
4. out-house cost

MCQ 1070: Total transferred-out cost plus normal spoilage is divided by number of goods units produced, to calculate:

1. cost per good units transferred out
2. cost per good units transferred in
3. revenue per good units transferred out
4. revenue per good units transferred in