Payback Method MCQ with Answers PDF Download – Test 28

If an initial investment is $765000, the payback period is 4.5 years, then increase in future cash flow will be

1. $5,645,000
2. $6,442,500
3. $3,442,500
4. $5,442,500

A group of individual indirect cost item is defined as

1. direct pool
2. cost pool
3. indirect pool
4. item pool

Which one of the following is an example of spoilage?

1. short lengths from wood work
2. defective aluminum cans recycled by manufacturer
3. detection of defective pieces before shipment
4. all of above

The capacity utilization of the business, to satisfy average customer's demand, for current budget period of time is termed as

1. master budget capacity utilization
2. finite cost utilization
3. infinite cost utilization
4. infinite budget capacity utilization

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