Bender Day 16

Question 1

The discount rate is determined in advance for which capital budgeting techniques?

Answer 1

NPV

MCQ-07098

Question 2

The best basis upon which cost standards should be set to measure controllable production inefficienceies is:

Answer 2

Engineering standards based on attainable performance

MCQ-04154

Question 3

Control Environment

Answer 3

Ethics
Board Independence
Org. Structure
Commitment to Competence
Accountability

MCQ-00433

Question 4

According to COSO, the presence of a written code of conduct provides for the control environment that can:

Answer 4

Encourage teamwork in the pursuit of an Entity’s objectives

MCQ-05161

Question 5

When preparing a performance report for a cost center using a flexible Budgeting techniques, the “planned costs” column should be based on?

Answer 5

Budget adjusted to the actual level of activity for the period being reported

Planned costs using a flexible Budget is adjusted to the actual level of activity

MCQ-04128

Question 6

Investors are likely to view a high price earnings (P/E) ratio as an indication that:

Answer 6

Earnings have growth potential

MCQ-06133

Question 7

When does competition not become an even stronger force impacting the profitability of a firm?

Answer 7

The costs of exiting the market are less than the costs of continuing to operate

MCQ-04068