1.What is the general rule for ROI?

Select one:

a. The ROI of a division is acceptable when it is more than RI.

b. The ROI of a division is acceptable when it is more than RRR.

c. The ROI of a division is acceptable when it is more than the profit.

d. The ROI of a division is acceptable when it is more than the total costs of the division.

2.The following information is available for product MAN08. Direct material costs $60.00 per unit of product Costs of machining $24.00 per machine hour Costs of packing $10.00 per carton packed What is the total full cost of an order for 5,000 units of product MAN08 which will use 95 machine hours and 70 cartons?

Select one:

a. $302,980

b. $300,000

c. $302,280

d. $300,700

3. Which of the following alternatives is NOT a benefit of budgeting?

Select one:

a. Encourages management to plan ahead.

b. Provides management with realistic performance targets.

c. Gives a 100% accurate prediction of what will happen in the future.

d. Furnishes management with motivation.

4.

Which of the following statements is correct?

Select one:

a. If the NPV of a project is negative, the investment is acceptable

b. If the NPV of a project is negative, the investment is unacceptable

c. If the NPV of a project is negative, the investment is highly profitable

d. The NPV of a project cannot be negative.

5.

Janice is the manager of the whiteboard marker manufacturing department. Which cost would not be classed as a direct cost of the whiteboard marker manufacturing process?

Select one:

a. Plastic material for the lid of the marker.

b. Ink of the marker.

c. Wages of staff who made the marker.

d. Depreciation of tools and equipment.

6.

Wages of the receptionist working at a manufacturing company can be classified as a:

Select one:

a. product cost.

b. period cost.

c. cost of sales.

d. none of these options.