821. The discount rate that results in an NPV of zero is known as:
A. Break-even point
B. Discount factor
C. Internal rate of return
D. Payback period
822. Which of the following would not be a benefit of adopting the balanced scorecard?
A. Vision and strategy can be presented into a set of performance targets
B. It helps links strategic objectives to the budgeting procedure
C. People understand how they can contribute to the strategic success of the firm
D. It creates gaps between the existing abilities of staff and the abilities required by staff
823. Interest on a debt of £500 is to be charged at 8% per annum. If the debt is repaid after 120 days then the interest on this amount would be equal to:
A. £40.00
B. £13.33
C. £13.15
D. £131.51
824. Interest on a debt of £500 is to be charged interest at 8% per annum. However, £200 must be paid after six months and the balance plus the interest at the end of the year. In this case, the APR would be:
A. 8%
B. 5%
C. 12%
D. 10%
825. The number of units in excess of the break-even point is otherwise known as:
A. Net contribution
B. Area of profit
C. Margin of safety
D. Volume of production
826. Which of the following is most unlikely to be a fixed cost?
A. Insurance
B. Raw materials
C. Advertising
D. Rent
827. An investment which gives the holder a regular income in return for one initial payment may be known as a(n):
A. Ordinary share
B. Annuity
C. Return
D. Discount factor
828. With fixed overheads at £34,000 per period, the variable cost at £9 per unit and each unit sold for £16 we can infer that the break-even point is:
A. 77,715 units.
B. 3,778 units.
C. 2,125 units.
D. 4,858 units.
829. Which of the following is most likely to be a fixed cost?
A. Power costs.
B. Factory maintenance.
C. Directors remuneration
D. Production staff wages.
830. Interest on a debt of £2,000 is to be charged interest at 8% per annum. However, £500 must be paid after six months and the balance plus the interest at the end of the year. In this case, the APR would be:
A. 9.1%
B. 10.7%
C. 8%
D. 9.3%