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Question 44

The net present value (NPV) of an investment is as follows.

NPV at 14% = $6,320

NPV at 18% = ($4,600) negative

The internal rate of return (IRR) of the investment is closest to

Options:

A.

14.6%

B.

16.0%

C.

16.3%

D.

20.3%

Question 45

Refer to the Exhibit.

The following budgetary information is available for a department in a manufacturing company:

The production overhead absorption rate percentage, when the percentage on prime cost is used, is:

Options:

Question 46

The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as A.

Options:

A.

Fixed cost

B.

Semi-variable cost

C.

Variable cost

D.

Stepped fixed cost

Question 47

Fixed costs can best be described as:

Options:

A.

Costs which are difficult to budget accurately

B.

Costs which remain constant, within a relevant range, when activity levels change

C.

Costs which never change

D.

Costs which are uncontrollable

Page: 11 / 14
Exam Code: BA2
Exam Name: Fundamentals of management accounting
Last Update: Dec 21, 2024
Questions: 392
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