QUESTION 16

1.The current market price of Fixit Ltd's ordinary shares is $5.00 each. If the latest earnings per share is $0.50, the company's price-earnings ratio is:

10 times.

2.0 times.

2.5 times.

20 times.

QUESTION 17

1.______________________________ shows how profit is affected by changes in sales volume, selling price of products and the various costs of the business.

Budgets

Cost-volume-profit analysis

sales targets

contribution margin

QUESTION 18

1.The accounting rate of return is calculated as follows: average net profit from the asset divided by:

total cash receipts or total cash savings from the investment.

initial cost of the asset.

average investment in the asset.

none of the above are true.

QUESTION 19

1.Relevant costs for decision-making are those costs that:

vary amongst alternatives.

represent fixed costs only.

are the same for all alternatives.

none of the above.

QUESTION 20

1.The sales budget for a retail business shows the:

expected timing of cash payments for purchases.

expenses and related cash payments associated with selling activities.

number of units of inventory that the business expects to sell each month

purchases (in units) required in each month.