The expenses on advertising is called (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

The expenses on advertising is called (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost
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Selling cost
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The expenses on advertising is called - (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Description : The expenses on advertising is called - (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Last Answer : (4) Selling cost Explanation: Selling cost is total cost of marketing, advertising, and selling a product. It differs from the production cost which is incurred to produce goods. Selling cost influences the commercial desire to purchase a commodity,

Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

Description : Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

Last Answer : (1) Variable Cost Explanation: In economics, marginal cost is the change in the total cost that arises when the quantity produced is Incremented by one unit. That is, it is the cost of producing one more ... in the short run. It is only the variable costs that vary with output in the short run.

Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

Description : Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

Last Answer : Variable Cost 

Implicit costs are (a) equal to total fixed costs (b) comprised entirely of variable costs (c) payments for self-employed resources(d) always greater in the short run than in the long run

Description : Implicit costs are (a) equal to total fixed costs (b) comprised entirely of variable costs (c) payments for self-employed resources (d) always greater in the short run than in the long run

Last Answer : (c) payments for self-employed resources

Breakeven point represents the condition, when the company runs under no profit no loss condition. In break even analysis, total cost comprises of fixed cost (A) Only (B) Plus variable cost (C) Plus overhead cost (D) Plus selling expenses

Description : Breakeven point represents the condition, when the company runs under no profit no loss condition. In break even analysis, total cost comprises of fixed cost (A) Only (B) Plus variable cost (C) Plus overhead cost (D) Plus selling expenses

Last Answer : Option B

Economies of a firm are : (1) An increase in its profits (2) A reduction in its selling expenses (3) Its dominance of the market (4) Saving in it's production costs

Description : Economies of a firm are : (1) An increase in its profits (2) A reduction in its selling expenses (3) Its dominance of the market (4) Saving in it's production costs

Last Answer : (4) Saving in it's production costs Explanation: Economics of a firm includes how it combines labour and capital so as to lower the average cost of output, either from increasing, decreasing, or constant returns ... of a good or a service on a larger scale, yet with (on average) less input costs.

Economies of a firm are : (1) An increase in its profits (2) A reduction in its selling expenses (3) Its dominance of the market (4) Saving in it’s production costs

Description : Economies of a firm are : (1) An increase in its profits (2) A reduction in its selling expenses (3) Its dominance of the market (4) Saving in it’s production costs 

Last Answer : Saving in it’s production costs

The difference between accounting profits and economic profits is: A. Implicit Cost B. explicit costs C. Fixed Costs D. Variable Costs

Description : The difference between accounting profits and economic profits is: A. Implicit Cost B. explicit costs C. Fixed Costs D. Variable Costs

Last Answer : ANSWER: A

Transfer earning or alternative cost is otherwise known as - (1) Variable cost (2) Implicit cost (3) Explicit cost. (4) Opportunity cost

Description : Transfer earning or alternative cost is otherwise known as - (1) Variable cost (2) Implicit cost (3) Explicit cost. (4) Opportunity cost

Last Answer : (4) Opportunity cost

Transfer earning or alternative cost is otherwise known as (1) Variable cost (2) Implicit cost (3) Explicit cost (4) Opportunity cost (economic cost)

Description : Transfer earning or alternative cost is otherwise known as (1) Variable cost (2) Implicit cost (3) Explicit cost (4) Opportunity cost (economic cost) 

Last Answer : Opportunity cost (economic cost)

If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Last Answer : (1) 20000 Explanation: Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment. It is given by the formula: BEQ = FC / (P-VC) Where ... per unit = 30/12 = Rs. 2.5 So 20000/ (2.5-1.5) = 20000/1= Rs. 20,000

If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Last Answer : 20000

he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are - (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs

Description : he non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are - (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs

Last Answer : (3) Implicit costs Explanation: In economics, an implicit is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. It is ... instead of renting, selling or lending it. These are costs a business incurs without actually spending money.

The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs

Description : The non-expenditure costs which arise when the producing firm itself owns and supplies certain factors of production are (1) Explicit costs (2) Original costs (3) Implicit costs (4) Replacement costs

Last Answer :  Implicit costs

Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest

Description : Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest

Last Answer : (C) At breakeven point, NSR is more than the total production cost

Which of the following is not a true statement about a multiple-step income statement? a. Operating expenses are often classified as selling and administrative expenses. b. There may be a section for nonoperating activities. c. There may be a section for operating assets. d. There is a section for cost of goods sold.

Description : Which of the following is not a true statement about a multiple-step income statement? a. Operating expenses are often classified as selling and administrative expenses. b. There may be a section for nonoperating ... be a section for operating assets. d. There is a section for cost of goods sold.

Last Answer : c. There may be a section for operating assets.

Freight costs paid by a seller on merchandise sold to customers will cause an increase a. in the selling expense of the buyer. b. in operating expenses for the seller. c. to the cost of goods sold of the seller

Description : Freight costs paid by a seller on merchandise sold to customers will cause an increase a. in the selling expense of the buyer. b. in operating expenses for the seller. c. to the cost of goods sold of the seller

Last Answer : b. in operating expenses for the seller.

The expenses incurred on the setting up of the enterprise are called as _________. A. Cost of financing. B. Cost of promotion.. C. Cost of fixed assets. D. Cost of current assets.

Description : The expenses incurred on the setting up of the enterprise are called as _________. A. Cost of financing. B. Cost of promotion.. C. Cost of fixed assets. D. Cost of current assets.

Last Answer : B. Cost of promotion..

Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant. (A) Overhead cost (B) Fixed expenses (C) General expenses (D) Direct production cost

Description : Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant. (A) Overhead cost (B) Fixed expenses (C) General expenses (D) Direct production cost

Last Answer : (C) General expenses

Manufacturing cost in a chemical company does not include the (A) Fixed charges (B) Plant overheads (C) Direct products cost (D) Administrative expenses

Description : Manufacturing cost in a chemical company does not include the (A) Fixed charges (B) Plant overheads (C) Direct products cost (D) Administrative expenses

Last Answer : (D) Administrative expenses

Factory manufacturing cost is the sum of the direct production cost (A) Fixed charges and plant overhead cost (B) And plant overhead cost (C) Plant overhead cost and administrative expenses (D) None of these

Description : Factory manufacturing cost is the sum of the direct production cost (A) Fixed charges and plant overhead cost (B) And plant overhead cost (C) Plant overhead cost and administrative expenses (D) None of these

Last Answer : (A) Fixed charges and plant overhead cost

Utilities cost in the operation of chemical process plant comes under the (A) Plant overhead cost (B) Fixed charges (C) Direct production cost (D) General expenses

Description : Utilities cost in the operation of chemical process plant comes under the (A) Plant overhead cost (B) Fixed charges (C) Direct production cost (D) General expenses

Last Answer : C) Direct production cost

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 expenses = administrative expenses + distribution & marketing expenses (C) Total product cost = manufacturing cost + general expenses (D) Total product cost = direct production cost + plant overhead cost

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

Fair value of Tangible fixed assets acquired in exchange of share shall be at its…………….. a) Actual cost b) Market Price c) Actual cost less expenses of exchange d) Market price less expenses of exchange

Description : Fair value of Tangible fixed assets acquired in exchange of share shall be at its…………….. a) Actual cost b) Market Price c) Actual cost less expenses of exchange d) Market price less expenses of exchange

Last Answer : a) Actual cost

Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Description : Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Last Answer : A. Prime cost + All Variable overheads

)A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency

Description : )A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency

Last Answer : (1) Soft currency Explanation: Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments ... set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar

The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (1) Consumer's Surplus (2) Producer's Surplus (3) Landlord's Surplus (4) Worker's Surplus

Description : The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (1) Consumer's Surplus (2) Producer's Surplus (3) Landlord's Surplus (4) Worker's Surplus

Last Answer : (1) Consumer's Surplus Explanation: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay ... price, then they are getting more benefit from the purchased product than they spent to buy it.

The excess of price a person is to pay rather than forego the consumption of the commodity is called - (1) Price (2) Profit (3) Producers' surplus (4) Consumer's surplus

Description : The excess of price a person is to pay rather than forego the consumption of the commodity is called - (1) Price (2) Profit (3) Producers' surplus (4) Consumer's surplus

Last Answer : (3) Producers' surplus Explanation: Producer Surplus' is an economic measure of the difference between the amount that a producer of a good receives and the minimum amount that he or she would be ... or surplus amount, is the benefit that the producer receives for selling the good in the market.

A currency having a falling exchange rate due to continuing balance of payments deficit is called a (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency

Description : A currency having a falling exchange rate due to continuing balance of payments deficit is called a (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency

Last Answer : Soft currency

The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (1) Consumer’s Surplus (2) Producer’s Surplus (3) Landlord’s Surplus (4) Worker’s Surplus

Description : The difference between the price the consumer is prepared to pay for a commodity and the price which he actually pays is called (1) Consumer’s Surplus (2) Producer’s Surplus (3) Landlord’s Surplus (4) Worker’s Surplus 

Last Answer : Consumer’s Surplus

The excess of price a person is to pay rather than forego the consumption of the commodity is called (1) Price (2) Profit (3) Producers’ surplus (4) Consumer’s surplus

Description : The excess of price a person is to pay rather than forego the consumption of the commodity is called (1) Price (2) Profit (3) Producers’ surplus (4) Consumer’s surplus

Last Answer : Producers’ surplus

The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A) Reserve and Surplus (B) Fixed Assets (C) Investments (D) Miscellaneous Expenditure

Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A) Reserve and Surplus (B) Fixed Assets (C) Investments (D) Miscellaneous Expenditure

Last Answer : (B) Equity Shareholders Account

The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure

Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A)Reserve and Surplus (B)Fixed Assets (C)Investments (D)Miscellaneous expenditure

Last Answer : (D)Miscellaneous expenditure

A currency whose exchange rate is influenced by the government is a/an - (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency

Description : A currency whose exchange rate is influenced by the government is a/an - (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency

Last Answer : (2) Managed Currency Explanation: Managed currency refers to currency whose ex-change rate is not determined by the free-market forces of demand and supply but instead by the government's intervention through the country's central bank.

Indian agriculture is typically characterised as - (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Description : Indian agriculture is typically characterised as - (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Last Answer : (3) land scarce, labour surplus economy Explanation: The labor surplus economy model has as its basic premise the inability of unskilled agricultural labor markets to clear in countries with high man/land ... Japan, South Korea, and Taiwan are similar to India in being land scarce and labor surplus.

Consumer's surplus is the highest in the case of: (1) durable goods (2) luxuries (3) comforts (4) necessities

Description : Consumer's surplus is the highest in the case of: (1) durable goods (2) luxuries (3) comforts (4) necessities

Last Answer : (4) necessities Explanation: Consumer surplus is the difference between the price consumers would be prepared to pay and the actual market price.

The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption

Description : The functional relationship between income and consumption expenditure is explained by - (1) Consumer' Surplus (2) Law of Demand (3) Law of Supply (4) Keynes's psychological law of consumption

Last Answer : (4) Keynes's psychological law of consumption Explanation: Keynes defined Psychological Law of Consumption in terms of, "The fundamental psychological law, upon which we are entitled to depend with great ... consumption as their income increases but not by as much as the increase in the income."

Operating Surplus arises in the - (1) Government Sector (2) Production for self consumption (3) Subsistence farming (4) Enterprise Sector

Description : Operating Surplus arises in the - (1) Government Sector (2) Production for self consumption (3) Subsistence farming (4) Enterprise Sector

Last Answer : (1) Government Sector

Labour Intensive Technique would get chosen in a - (1) Labour Surplus Economy (2) Capital Surplus Economy (3) Developed Economy (4) Developing Economy

Description : Labour Intensive Technique would get chosen in a - (1) Labour Surplus Economy (2) Capital Surplus Economy (3) Developed Economy (4) Developing Economy

Last Answer : (1) Labour Surplus Economy Explanation: Labour' refers to the people required to carry out a process in a business. Labour-intensive processes are those that require a relatively high level of ... intensive processes are more likely to be seen in Job production and in smaller-scale enterprises.

Surplus earned by a factor other than land in the short period of referred to as- (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent

Description : Surplus earned by a factor other than land in the short period of referred to as- (1) economic rent (2) net rent (3) quasi-rent (4) super-normal rent

Last Answer : (3) quasi-rent Explanation: Quasi-rent is the surplus which is received in the short period because of demand exceeding the supply by the man made factors besides land. It is an analytical term ... opportunity cost is defined as the current income minus the income available in the next best use.

Surplus budget is recommended during (1) Boom (2) Depression (3) Famines (4) War

Description : Surplus budget is recommended during (1) Boom (2) Depression (3) Famines (4) War

Last Answer : (2) Depression Explanation: Surplus budget is a budget in which government receipts arc greater than government expenditures. Such a budget is desired when the economy is battling inflation due to excess ... (i) rise in revenue collection by the government and (ii) fall in government expenditure.

______ is the practice of growing crops and raising livestock sufficient only for one’s own use, without any surplus for trade a. Private Farmingb. Extensive Farmingc. Subsistence Farmingd. Meagre Farming

Description : ______ is the practice of growing crops and raising livestock sufficient only for one’s own use, without any surplus for trade a. Private Farming b. Extensive Farming c. Subsistence Farming d. Meagre Farming

Last Answer : c. Subsistence Farming

6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid recessions and inflation (to have equilibrium), the government should have a: a. balanced budget b. budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

Last Answer : c. budget surplus of $1000

The records of exports and imports in goods and services and transfer payments is known as a) Current account b) Budget surplus c) Economic leakage d) degree of openness

Description : The records of exports and imports in goods and services and transfer payments is known as a) Current account b) Budget surplus c) Economic leakage d) degree of openness

Last Answer : a) Current account

‘Normal Profit’ means (a) Profit earned by the marginal firm in a normal year. (b) Minimum amount needed to keep a firm in the same business. (c) The payment made to marginal firm for its ability. (d) Surplus profit earned by the least efficient firm

Description : ‘Normal Profit’ means (a) Profit earned by the marginal firm in a normal year. (b) Minimum amount needed to keep a firm in the same business. (c) The payment made to marginal firm for its ability. (d) Surplus profit earned by the least efficient firm

Last Answer : (c) The payment made to marginal firm for its ability.

Indian agriculture is typically characterised as (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Description : Indian agriculture is typically characterised as (1) land surplus, labour scarce economy (2) land surplus, labour surplus economy (3) land scarce, labour surplus economy (4) land scarce, labour scarce economy

Last Answer :  land scarce, labour surplus economy

A currency whose exchange rate is influenced by the government is a/an (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency

Description : A currency whose exchange rate is influenced by the government is a/an (1) Unmanaged Currency (2) Managed Currency (3) Scarce Currency (4) Surplus Currency

Last Answer : Managed Currency

Surplus budget is recommended during : (1) Boom (2) Depression (3) Famines (4) War

Description : Surplus budget is recommended during : (1) Boom (2) Depression (3) Famines (4) War

Last Answer : Depression

The functional relationship between income and consumption expenditure is explained by (1) Consumer’ Surplus (2) Law of Demand (3) Law of Supply (4) Keynes’s psychological law of consumption

Description : The functional relationship between income and consumption expenditure is explained by (1) Consumer’ Surplus (2) Law of Demand (3) Law of Supply (4) Keynes’s psychological law of consumption

Last Answer :  Keynes’s psychological law of consumption