1091.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
1092. 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 interst at the end of the year. In this case the APR would be :
A. 9.1 %
B. 10.7 %
C. 8 %
D. 9.3 %
1093. Which of the following would increase the break-even output level?
A. Lower fixed costs
B. Lower output level
C. Higher production costs per unit of output *
D. Higher selling prices for each unit sold
1094. Which of the following would be used in a capital investment decision?
A. How long the project will last for when using ARR *
B. Discount factors when using ARR
C. Sunk costs
D. Revenues received after the payback period when using the payback method
1095. Which of the following is not a type of decision made to protect your assets and to plan beyond your career?
A. How much money to spend on stereo equipment *
B. How much insurance you need
C. How much money you must save per year so that you can retire in a specific year
D. How much money you will need for retirement
1096. Which of the following is not a type of decision made to manage your liquidity ?
A. How much money you can borrow to spend on a car *
B. How much money you should maintain in your checking account
C. Whether you should use credit cards as a means of borrowing money
D. How much money you should maintain in your saving account
1097. If your income exceeds the amount that you wish to spend, you should ___________ your investments or _________ loans :
A. Reduce: repay existing
B. Increase : repay existing *
C. Increase; obtain more
D. Reduce ; Obtain more
1098. Which of the following is not a step in developing the financial plan?
A. Evaluate your financial plan
B. Establish your financial goals
C. Identify alternative plans that could achieve your goals
D. All of the above are steps in developing the financial plan *
1099. Which of the following is incorrect ?
A. The career choice is restricted to students who are just completing their education *
B. Many people change their career over time
C. A shift to a new career should be influenced by your views of what will satisfy you
D. All of the above are correct
1100. The financial plan of a person in a different financial position that yourself would be :
A. The same as your financial plan
B. Different from your financial plan
C. Different from or the same as your financial plan, depending on the person’s financial goals
D. None of the above