1. Which of the following the best describe as variable cost?

• As a direct relationship with output
• remains at the same level year after year
• re[present a fixed proportion of total cost
• remains at the same level when the output increase.

2,Which of the following statement is true?

• Total direct cost are always greater than total indirect cost
• Indirect cost are alternatively called as overheads
• Fixed cost per unit as the same at all level of production
• A direct cost will always be a fixed cost

3.alpha ltd spent 5m pound on salaries and wages last year. the budget for the coming year has been a set as 6m pound to include for the wages rises and 0.8m pound for new staff appointments. Which one of the following is true?

• This type of plan is incompatible with a rolling programme
• This is an example of incompatible budgeting
• Last year budget must have been inaccurate
• This is an exmaple of zero based budgeting

4.Which one of the following is best applied to the NPV method of Investment apprisal?

*Nominal Profit Variable

*Most managers are only interested in a short term solutions

*an investment appraisal method that uses discounting technique to difference between investment project

*none of the above

5.Which of the following is not usually features of NPV?

• Recognize the time value of money
• Uses profit to rank project
• Can be used to assess all project
• Is considered by academics to be the best investment appraisal method