7. The High Low Method is easy to understand. That is the weakness of this method.

True

False

23. In the case of a Special Order, the 'Special' Selling Price can be lower than the Variable Cost

True

False

36. Capital budgeting and budgeting are the same concepts.

True

False

37. An investor will Always invest in a country with low risk without considering other factors.

True

False

38. Allocated Fixed cost is considered for decision making?

True

False

43. In ZERO Based Budgeting, Managers are required to justify all expenses.

True

False

44. In Participative budgets, budgets are imposed upon the managers.

True

False

45. Sales is $60,000, Variable cost is 30,000, fixed cost is 60,000. What is the Breakeven Sales in $.

70,000

120,000

80,000

100,000

47. Revenue = 2,000, Variable cost = 500, Fixed cost = 800. Find degree of operating leverage (DOL)

1.88

2.50

2.14

0.71