6. Under variable costing, fixed manufacturing overhead costs would be classified as:

a. Product costs. b. Period costs. c. Selling costs. d. Inventory costs.

7. A 10% internal rate of return (IRR) on a proposed capital investment indicates all of the following except:

a. The economic rate of return on the project is expected to be 10%. b. Use of a 10% discount rate would result in an estimated project NPV of zero. c. A positive net present value (NPV) if the company required rate of return is less than 10%. d. The project would be accepted if the company required rate of return is greater than 10%

. 8. Any system of compensation:

a. May encourage unethical behavior. b. Should be designed by top management. c. Must be approved by the auditor. d. Must include bonuses.

9. A firm with a declining market share percentage may still earn a higher operating income if the

: a. Market as a whole is declining. b. Market as a whole is stable. c. Market as a whole is shifting. d. Market as a whole is growing.

10. The manager acting independently in such a way as to simultaneously achieve top management's objectives is exhibiting:

a. Performance evaluation. b. Operational control. c. Goal congruence. d. Management control