Question

e break-even point will decrease. B. The break-even point will l break-even point will remain constant. Il other things held constant, how will an increase lll The effect on the break-even point can't be predicted with certainty. 4. Fixed costs: A. Fall as sales volume falls. C. Rise as sales volume falls. B. Rise as sales volume rises. D. Remain steady when sales volume changes. 5. Variable costs would include: A. Rent expense B. Depreciation expense-straight line. C. Sales commission exp D. Executive salaries expense. 6. Preparation of a budgeted income statement does not require: A. Estimates of cost of goods sold. C. Preparation of a sales forecast. B. Estimates of the timing of cash receipts and payme D. Anticipation of operating expenses. 7. Capital investment proposals may not be evaluated by using: A. The payback period. B. The return on investment method. C. The discounted cash flow method. D. The income statement method. 8. The minimum rate of return used by an investor to bring future cash flows to their present va D. The present rate. A. The investment rate. B. The prime rate. C.The discount rate. 9. When manag ement considers an investment, they look for the payback period to be: A. Short. B. Long. C. Profitable. D. Useful. 10. An investment's annual net cash flow will always be equal to its: A. Annual revenue less its annual expenses. B. Annual cash receipts less its annual cash disbursements. C. Annual revenue less its annual cash disbursements. D. Annual net income plus its annual depreciation expense P: My Documents\finalspring2018Managerialday doc Page 1 of 3

Answer 1

	4)	option d
		Remain steady when sales volume change
	5)	option C
		Sales commission
	6)	option B
		Estimating of the timing of cash receipts and
		payments
	7)	option D
		income statement method
	8)	option C
		the discounted rate
	9)	option A
		short
	10)	option D
		annual net income plus its annual depreciation
		expense