MULTIPLE-CHOICE TASKS Only one alternative is correct. Write the answers on a separate form, page 9, No minus points are awarded. Remember that the sheet must be handed in as part of the answer. 1. What do we call the difference income when the change in production goes towards zero (one unit)? A. Total income, B. The average income, C. Frontier income 2. What do we mean by depreciation? A. Depreciation measures costs associated with fixed assets B. Depreciation means a financial rejection of capital equipment C. Depreciation is made to reduce the tax burden 3. The service company normally lacks a significant cost type, which is found in both industrial companies and in trading companies. A. Contract pay B) Material costs C) Depreciation 4. The "time limitation equation" or the "stock law" reads as follows A. UB + Procurement = 1B + Consumption B. IB + Procurement = UB + Consumption C. IB - Procurement UB + Consumption 5. The gross margin is defined as A. Advance as a percentage of sales. B) The advance as a percentage of the purchase price C. The sum of the surcharge and the VAT surcharge 6. How big is the VAT a retailer pays to the state when the item's net purchase price is NOK. 400 and sale price including VAT. is kr. 750 A. 50 kroner B. 250 kroner C. 100 kroner 7. Assume that an item has a price elasticity of -2.0 This means that a price reduction of 20% gives a approximate A. 40% reduction in quantity B. Increase in quantity of 40% C. Increase in quantity of 20% 8. A company wants to attach a new department head but has a limitation with regard to total annually salary cost for this manager of NOK 450,000. What annual salary, excl. holiday pay they can offer this the leader. The rates for holiday pay and employer's contribution are resp. 12% and 14.1% A. 356 860. B) 401 786. C) 352 135 9. A production company produces and sells one product for NOK 500. The variable cost of the product is 450 kroner. How many units must the company sell to cover its fixed costs at NOK 3 million. A. 20,000 units. B) 6,667 units. C)5,000 units 10. What is the common name for economic resources such as labor, natural resources and produced means of production? A. Current assets B) Realkarital C) Factors of production 11. What do we mean by company costs? A. Costs are the use of factors of production measured in money B. Costs are all on the downside in the accounts C. Costs are negative income