[10] [11] [12] A moving twelve-month budget where a future month is added as the current month expires is called a(n): a) Zero-base budget b) Incremental budget c) Revolving budget d) Continuous budget 1 Mark A project has an initial cash outflow followed by several years of cash inflows. What will be the effect on the Internal Rate of Return (IRR) of the project and its payback period, if during the period there is an increase in the company's cost of capital? a) IRR increase; Payback period increase b) IRR no change; Payback period increase c) IRR increase; Payback period no change d) IRR no change; Payback period no change 1 Mark Tiziano Plc reported the following units of production and sales for June and July: Month June 2016 July 2016 Units Produced 100,000 Sold 90,000 100,000 105,000 Net income under absorption costing for June was 40,000; net income under variable costing for July was 50,000. Fixed manufacturing costs were 600,000 for each month. How much was net income for June using variable costing? a) 40,000 b) 20,000 c) (40,000) d) (20,000) 3 Marks