1

The case where investment capital for a given accounting period is limited is called:

	a.	Capital rationing.
	b.	Capital hedging.
	c.	Normal cash flows.
	d.	Non-normal cash flows.
	e.	Profitability index.

2

Most costs in a service organization are considered what type of cost?

	a.	Short-term variable costs.
	b.	Either short- or long-term fixed costs.
	c.	Short-term fixed costs.
	d.	Long-term variable costs.
	e.	Long-term fixed costs.