FPM Quiz 1

. ______ working Capital refers to the firm’s investment in current assets.

• A. Zero

• B. Net

• C. Gross

• D. Distinctive

Fixed Cost Includes

• Cost of Labor

• Cost of Powe

• Cost of Factory

Variable Cost Includes

• Cost of Rent

• Cost of Raw Materials

• Cost of Salaries

. ______ working Capital is the difference between current assets and current liabilities.

• D. Fixed

• B. Current

• A. Net

• C. Total

Which of the following is a component of Total Cost?

• C. Both A and B

• B. Variable Cost

• A. Fixed Cost

From following which is not type of Profitability ratio

• Net Profit

• Operating Profit

• Debt-Equity

• Gross Profit

Which of the following is a type of Current Asset?

• B. Long-term Investments

• A. Inventory

• C. Property, Plant, and Equipment

Which of the following is a characteristic of Fixed Costs?

• A. Varies with production level

• B. Remains constant regardless of production

• C. Directly tied to sales revenue

Which of the following is not a component of Total Cost?

• A. Direct Materials

• B. Indirect Labor

• C. Market Research Expenses

Elements of Cost

• Material

• Labor

• Other

• All of the above