Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net cash flows expected from capital investment proposals? a. Internal rate of return b. Cash payback c. Net present value d. Average rate of return
____ 62. Which method of evaluating capital investment proposals uses
|
a. |
|
|
b. |
Cash payback |
|
c. |
|
|
d. |
Average rate of return |
____ 63. Which of the following is not a commonly used approach to setting transfer prices?
|
a. |
Market price approach |
|
b. |
Revenue price approach |
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c. |
Negotiated price approach |
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d. |
Cost price approach |
____ 64. The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is:
|
a. |
Process |
|
b. |
Departmental |
|
c. |
first-in, first-out |
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d. |
job order |
____ 65. A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:
|
Domestic unit sales price |
$21 |
|
Unit |
|
|
Variable |
$12 |
|
Fixed |
$5 |
What is the amount of the gain or loss from acceptance of the offer?
|
a. |
$35,000 loss |
|
b. |
$40,000 gain |
|
c. |
$60,000 gain |
|
d. |
$50,000 gain |
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