All MCQs

56. With whom do we associate the concept of Human Life Value?

A) Martin Luther

B) Prof.H.S.Huebner

C) J.M.Keynes

D) Warren Buffet

✅ ANSWER: B
With Prof.H.S.Huebner we associate the concept of Human Life Value. Human life value (HLV) concept is an economic theory developed in 1920’s that attempt to assign a monetary value to one’s life.

10. Profit is a part of

A) Income

B) Owner’s capital

C) Assets

D) All of the above

✅ ANSWER: B
Profit is a part of Owner’s capital. When a company generates a profit and retains a portion of that profit after subtracting all of its costs, the owner’s equity generally rises.

52. Wages and other benefits, provided to assembly line workers and operators of machine are classified under

A) work in process costs

B) finished costs

C) direct manufacturing labour costs

D) indirect manufacturing labour costs

✅ ANSWER: D
Wages and other benefits, provided to assembly line workers and operators of machine are classified under indirect manufacturing labour costs. Indirect manufacturing costs are production costs that cannot be directly associated with a produced unit.

9. The normal balance of asset account is

A) Credit balance

B) Debit balance

C) Cash balance

D) Neither debit nor credit balance

✅ ANSWER: B
The normal balance of asset account is Debit balance. Normal balance is the side where the balance of the account is normally found.

48. Rate denoted as r* is best classified as

A) real risk-free interest rate

B) real-risk free nominal rate

C) real-risk free quoted rate

D) real-risk free nominal premium

✅ ANSWER: A
Rate denoted as r* is best classified as real risk-free interest rate. The Risk-Free Rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.

45. During short period, diminishing returns may follow because

A) Quantity of labour is fixed

B) Quantity of output is fixed

C) Quantity of capital is fixed

D) Quantity of any one factor is fixed

✅ ANSWER: D
During short period, diminishing returns may follow because quantity of any one factor is fixed.

43. Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as

A) pricing method

B) manufacturing method

C) conference method

D) inference method

✅ ANSWER: C
Method, which considers cost and cost drivers of departments such as employee relations and process engineering is termed as conference method. The conference method is an approach to cost estimation that pools together data, analyses, and knowledge from expert sources in order to make decisions about costs.

41. Smart card is better protected than other cards using.

A) Encryption

B) Firewall

C) Hub

D) All the above

✅ ANSWER: A
Smart card is better protected than other cards using Encryption. Encryption is the process of encoding a message or information in such a way that only authorized parties can access it and those who are not authorized cannot.

78. ERP stands for.

A) Enterprise resolution planning

B) Enterprise reverse planning

C) Enterprise resource planning

D) None of the above

✅ ANSWER: C
ERP stands for Enterprise resource planning. It’s a business process management software that manages and integrates a company’s financials, supply chain, operations, reporting, manufacturing, and human resource activities.

75. Time and motion study is conducted by ________.

A) time keeping department

B) personnel department

C) payroll department

D) engineering department

✅ ANSWER: D
Time and motion study is conducted by engineering department. It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods.