Description : This strategy will concentrate on the Traditional and Low End segment. Competitive advantage will be gained by keeping R&D costs, Production costs, and raw materials costs to a minimum, ... Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : b. Niche Cost Leader
Description : A Unit Price (UP) contract provides: 1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses 2. a reimbursement of allowable cost of services ... unit rates and the final price is dependent on the quantities needed to carry out the work.
Last Answer : 4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work
Description : In estimation of cost functions, variations in a single activity level represents the A. related total costs B. related fixed cost C. related variable cost D. related per unit cost
Last Answer : A. related total costs
Description : Internal costs include a) Developers salaries b) Managers and support personnel salaries c) The cost of overheads such as utilities, rent and senior managers d) Materials (such as manuals) and services such as travel e) All of the above.
Last Answer : a) Developers salaries
Description : )Quality costs include : 1. the total of all costs incurred to assure the production and delivery of acceptable products and services. 2. Only costs classified as prevention, detection and ... rework due to defects, customer returns and warranty costs. 4. The expense of upper management
Last Answer : 1. the total of all costs incurred to assure the production and delivery of acceptable products and services.
Description : Which of the following statements relating to working capital financing is not correct? A. An aggressive policy uses long-term debt to finance fluctuating current assets B. Long-term debt ... . The matching principle indicates that fluctuating current assets should be financed by short-term debt
Last Answer : A. An aggressive policy uses long-term debt to finance fluctuating current assets
Description : An Expected Monetary Value (EMV) of $100000 on a potential project event in the project means which of the following? Select one: a. A number that can be ignored b. An opportunity that ... Actual investment returns on the event e. A threat that must be considered to minimize the project risk
Last Answer : b. An opportunity that must be explored
Description : From the information given below, calculate Debt service coverage Ratio- Net profit after interest and Tax Rs. 40,000, Depreciation Rs. 5,000, Rate of Income Tax 50%, 10% Mortgage Debentures Rs. 60,000. Fixed Interest Charges Rs. 6 ... . (A) 4 06 times (B) 5 06 times (C) 6 06 times (D) 7 06 times
Last Answer : Answer: 4•06 times
Description : Depreciation (A) Costs (on annual basis) are constant when the straight line method is used for its determination (B) Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time ... income tax liability on cash flows from an investment (D) All (A), (B) and (C)
Last Answer : (D) All (A), (B) and (C)
Description : A jewelry store is more likely than a jewelry manufacturer to conside consider in making a location decision. a. transportation costs b. cost of raw materials materials c. parking and access d. climate
Last Answer : c. parking and access
Description : Which three factors drive labor cost? a. Production capacity b. Wage and benefit rates c. Automation levels d. Second shift/Overtime costs e. b, c, d
Last Answer : e. b, c, d
Description : ncreasing a product’s reliability will result in which of the following changes to production costs? a. Lower material cost b. Higher material cost c. Higher labor costs d. Lower labor costs e. Reducing MTBF has no effect on costs of production
Last Answer : b. Higher material cost
Description : A Firm is considering undertaking a project that would yield annual profits (after depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs 800,000 and the project's assets would have ... accounting rate of return for this project? A 16% B 8.5% C 8.0% D 9.1%
Last Answer : A 16%
Description : Cash inflows from a project include: A. tax shield of depreciation B. after tax operating profits C. raising of funds D. Both (a) and (b)
Last Answer : D. Both (a) and (b)
Description : Which of the following does not affect cash flows from a proposal: A. Salvage value B. Depreciation amount C. Tax rate change D. Method of project financing
Last Answer : D. Method of project financing
Description : All of the following influence capital budgeting cash flows except . A. choice of depreciation method for tax purposes B. economic length of the project C. projected sales (revenues) for the project
Last Answer : B. economic length of the project
Description : This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by keeping R&D costs, Production costs and raw material costs to a minimum, ... Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : a. Broad Cost Leader
Description : This strategy attempts to gain a competitive advantage by keeping R&D costs, production costs and raw material costs to a minimum in order to compete on the basis of price. The product life ... Life Cycle Focus d. Differentiation strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : c. Cost Leader with Product Life Cycle Focus
Description : A Cost Breakdown Structure (CBS) shows costs assigned to: a. individual work packages using the Work Breakdown Structure (WBS). b. individual resources using the Work Breakdown Structure ... Assignment Matrix (RAM). d. individual deliverables using the Responsibility Assignment Matrix (RAM)
Last Answer : a. individual work packages using the Work Breakdown Structure (WBS).
Description : ___ should be made of all cost factors so as to reflect on all relevant investment and operational costs of the project including contingencies.
Last Answer : Ans. Realistic estimates
Description : Which of the following are parameters involved in computing the total cost of a development project? a) Hardware and costs b) Effort costs c) Travel and training costs d) All of the mentioned
Last Answer : d) All of the mentioned
Description : In Project crashing, rent and overheads are treated as A.Significant Cost B.Insignificant costs C.Direct Costs D.Indirect Costs
Last Answer : D.Indirect Costs
Description : Cost controls can be best described by which of the following? 1. The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could ... of gathering, accumulating, analyzing, reporting, and managing the costs on an on-going basis.
Last Answer : 4. The process of gathering, accumulating, analyzing, reporting, and managing the costs on an on-going basis.
Description : Cost budgeting can be best described by which of the following? 1. The process of developing the future trends along with the assessment of probabilities, uncertainties, and inflation that could ... of gathering, accumulating, analyzing, reporting, and managing the costs on an on- going basis
Last Answer : 3. The process of establishing budgets, standards, and a monitoring system by which the investment cost of the project can be measured and managed
Description : A profitability index (PI) of .92 for a project means that . A. The project's costs (cash outlay) are (is) less than the present value of the project's benefits B. The project's NPV is ... is greater than 1 D. The project returns 92 cents in present value for each current rupee invested (cost)
Last Answer : C. The project's NPV is greater than 1
Description : In corporate costs, cost incurred to finance construction of new equipment are classified as A. treasury costs B. discretionary costs C. human resource management costs D. corporate administration costs
Last Answer : A. treasury costs
Description : Costs that are not directly related to the products or services of the project, but are indirectly related to performing the project. A. Intangible Costs B. Sunk Cost C. Tangible Costs D. Indirect Costs
Last Answer : D. Indirect Costs
Description : Considers the total cost of ownership, or development plus support costs, for a project. A. Learning Curve Theory B. Life Cycle Costing C. Parametric Modeling D. Rate of Performance
Last Answer : B. Life Cycle Costing
Description : Direct costs component of the fixed capital consists of (A) Contingencies (B) Onsite and offsite costs (C) Labour costs (D) Raw material costs
Last Answer : (B) Onsite and offsite costs
Description : How would the system described abroive help to cut labor costs and make factory production more effieient?
Last Answer : Need answer
Description : In short run, if a competitive firm incurs losses, it will - (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.
Last Answer : (1) stop production. Explanation: In the short run, a firm that is operating at a loss (where the revenue is less that the total cost or the price is less than the unit cost) must ... will shutdown if the sale of the goods or services produced cannot even cover the variable costs of production.
Description : In short run, if a competitive firm incurs losses, it will (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.
Last Answer : stop production.
Description : What is the term in economics for the consumption of fixed capital? a) Investment b) Value added c) Production flow d) Depreciation
Last Answer : d) Depreciation
Description : Which of these factors factors would be consider be considered when ed when making a location ocation decision decision at the site level? a. government government rules, attitudes, ... availability availability of utilities utilities e. proximity proximity to raw materials materials and customers
Last Answer : c. zoning regulations
Description : Which of the following will improve a company's working capital management position? A. An increased level of bad debts B. An increase in the credit period allowed by suppliers C. An increased debtor ... D. An increase in the stock turnover period E. An increase in the length of the production
Last Answer : B. An increase in the credit period allowed by suppliers
Description : Which of the following relationship is not correct is case of a chemical process plant? (A) Manufacturing cost = direct product cost + fixed charges + plant overhead costs (B) General ... manufacturing cost + general expenses (D) Total product cost = direct production cost + plant overhead cost
Last Answer : (D) Total product cost = direct production cost + plant overhead cost
Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease
Last Answer : (a) 10.1% decrease
Description : Which is appropriate description of Average Costs? a) The value of opportunities which have been lost by utilizing resources in particular service or health technology. b) The total costs (i.e. all the ... costs. d) The cost of the consumption of medicines is a good example of variable costs.
Last Answer : b) The total costs (i.e. all the costs incurred in the delivery of a service) of a health care system divided by the units of production.
Description : Which of these costs will increase or decrease with increase in production (a) Marginal cost ; (b) Financial costs ; (c) Fixed costs ; (d) All the three
Last Answer : (a) Marginal cost ;
Description : Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production ... 1) and (2) only (c) (1) and (3) only (d) (2) and (3) only
Last Answer : (c) (1) and (3) only
Description : Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case? A. Purchase Order B. Cost plus Fee C. Fixed cost D. Time and Material
Last Answer : A. Purchase Order
Description : .Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case? A. Purchase Order B. Cost plus Fee C. Fixed cost D. Time and Material
Description : Normally a performance bond, depending upon the state, only stipulates that the contractor will guarantee the work for a certain period of time. Answer: D (8)Which contract type places the most risk on ... fee 3. Cost plus fixed fee 4. Fixed price plus incentive fee 5. Firm fixed price
Last Answer : 5. Firm fixed price
Description : )The fixed price contract is advantageous to the buyer because it: 1. requires extremely well defined specifications 2. requires formal procedures for scope changes 3. contractor assumes financial and technical risk 4. has a known cost
Last Answer : 3. contractor assumes financial and technical risk
Description : )A new project was initiated that involves new technology and subsequently has never been done before. What type of contract would to owner want to issue to reduce or eliminate as much risk as possible. 1. Firm ... 2. Cost plus fix fee 3. Cost plus incentive fee 4. Lump sum 5. A and D
Last Answer : 5. A and D
Description : Which of the following type of contracts is most preferable to the contractor doing the project work? 1. Cost plus fixed fee 2. Fixed price 3. Fixed price plus incentive free 4. B and C
Last Answer : 1. Cost plus fixed fee
Description : Project Manager must ensure that it develops appropriate trade off/s as A. Time, cost and performance B. Time, value and performance C.Men, Materials and Machines D.Money, Cost and Return on Investment
Last Answer : A. Time, cost and performance
Description : Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes ... C. Use the excess funds to repurchase common stock. D. Purchase additional plant and equipment.
Last Answer : B. Invest the excess long-term financing in marketable securities.
Description : Which of the following statements is most correct? A. For small companies, long-term debt is the principal source of external financing. B. Current assets of the typical manufacturing firm account ... the financial manager to make a decision and not address the issue again for several months.
Last Answer : B. Current assets of the typical manufacturing firm account for over half of its total assets.