1) In the early days, labour hours were used as a means to allocate overheads?

True

False

2) Quantity sold below breakeven point results in a Loss.

True

False 3) Law of diminishing returns causes output per hour to reduce with the passage of time

True

False

4) Managerial accounting takes more time than Financial Accounting

True

False

5) When sales drops by 70%, all costs drop.

True

False

6)Process reengineering is a part of Lean Business Model

True

False

7) A weakness of Traditional Budgeting system.

Not accurate

Too slow because of many meetings

Managers trying to manipulate the system

No weakness

8) Say you invest 100,000 today. You will get 30,000 in year 1, 30,000 in year 2 and 40,000 in year 3. Is the project profitable when r = 15%? Show using Net Present Value Calculation (NPV).

-15,87

-24,928

0

25,000

9) In process industry, conversion costs are low.

True

False