1.

The IRR is the rate of return that discounts the cash flows of a project so that the present value of the cash inflows

Select one:

a. is more than the present value of the cash outflows

b. is equal to the present value of the cash outflows

c. is less than the present value of the cash outflows

d. is positive

2.

The estimated overhead for the machine set-ups cost pool, is $150,000. The machines in the pool produce three products: X (requiring 300 set-ups); Y (requiring 400 set-ups) and Z (requiring 100 set-ups). The amount of machine set-up costs that should be allocated to product X is:

Select one:

a. $45,000

b. $500

c. $56,250

d. $187,500

3.

All of these are indirect costs except:

Select one:

a. factory rent.

b. factory utilities.

c. factory labour salaries.

d. supervisor salaries.

4.

In using the balanced scorecard for a fast food restaurant, which of the perspectives would most likely use how long it takes to make one meal as a performance measurement?

Select one:

a. Financial.

b. Customer.

c. Internal operations.

d. Innovation and improvement activities.

5.

Which of the following is NOT a disadvantage of outsourcing?

Select one:

a. Less control over the quality of the product.

b. Less control over the time it takes to finish the work.

c. Takes time to make a deal and find a suitable company.

d. All of these options

6.

Applying the general rule of Residual Income (RI), a good divisional performance would have a RI which is

Select one:

a. greater than RRR.

b. greater than ROI

c. greater than profit before tax.

d. greater than zero.

7.

If the business produced 10,000,000 units, the variable cost per unit is $4.05, the selling price per unit is $20 and the total fixed costs are $9,400,000. What is the contribution margin per unit?

Select one:

a. $15.95

b. $526,645

c. $24,05

d. $4.94