Question 11.11. If a company's required minimum rate of return is 9%, and in using the net present value method, a project's net present value is zero, what does this indicate? (Points : 2)

the project's rate of return exceeds 9%. the project's rate of return is less than the minimum rate required. the project earns a rate of return of 9%. the project earns a rate of return of 0%.

Question 12.12. In a retain or replace equipment decision, which is correct regarding trade-in allowance available on old equipment? (Points : 2)

increases the cost of the new equipment. is not realized if the old equipment is retained. is not relevant to the decision. reduces the cost of the old equipment.

Question 13.13. A company is considering purchasing factory equipment that costs $320,000 and is estimated to have no salvage value at the end of its 8-year useful life. If the equipment is purchased, annual revenues are expected to be $90,000 and annual operating expenses exclusive of depreciation expense are expected to be $40,000. The straight-line method of depreciation would be used. What would be the cash payback period on the equipment? (Points : 2)

3.2 years. 6.4 years. 3.6 years. 8.0 years

Question 14.14. What is the total materials variance equal to? (Points : 2)

the materials price variance the difference between the materials price variance and materials quantity variance the product of the materials price variance and the materials quantity variance the sum of the materials price variance and materials quantity variance

Question 15.15. Toolworks has a standard of 1.5 pounds of materials per unit, at $6 per pound. In producing 2,000 units, Toolwork's used 3,100 pounds of materials at a total cost of $17,980. What is Toolwork's total variance? (Points : 2)

$20 F $420 F $600 U $620 F

Question 16.16. What does the matrix approach to variance analysis result in? (Points : 2)

It yields slightly different variances than the formula approach. More accuracy than the formula approach. No separate price and quantity variance calculations. A convenient structure for determining each variance.