Payback Method MCQ with Answers PDF Download – Test 28

MCQ 136: 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

MCQ 137: A group of individual indirect cost item is defined as:

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

MCQ 138: 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

MCQ 139: 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

MCQ 140: 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