Supporting Management Cases 2

​Cases 2

Multiple Choice

The following is The Related statements w BEP? (Except)

• The total income from sales is equal to total expenses

• Break-Even analysis is used give answer "the maximum level of sales to achieve

• The level of sales make zero profit

• The component of BEP Formula is Variable cost, fixed cost and sales

• Variable costs depending on a company's sales

Multiple Choice

The Pharmacy has not reached yet. The pharmacist try to decrease the BEP. What should he do?

• Increase the purchase

• Increase the sales

• Increase the fixed cost

• Increase the profit margin

• Increase the equity

Multiple Choice

This following cost is the Variable cost

• Salary

• Rent

• Purchasing

• Maintenance cost

• Depreciation

Multiple Choice

The process that companies use for decision making on capital project. This following related with the capital budgeting analysis (Except)

• The decision are based on cash flows

• Cash flows analyzed based on opportunity costs

• The decisions are based on accounting concepts

• Timing of cash flows is crucial

• Financing cost are ignored

Multiple Choice

The acceptance criterion: if an investment project is zero or more.

• PBP

• Discounted PBP

• Net Profit Margin

• net Present Value

• Internal Rate Return

Multiple Choice

The acceptance criterion: The internal rate is more than the minimum rate of return on investment

• PBP

• Discounted PBP

• Net Profit Margin

• net Present Value

• Internal Rate Return

Multiple Choice

The method of capital budgeting analysis ignores the time value of money

• PBP

• Discounted PBP

• Net Profit Margin

• net Present Value

• Internal Rate Return