331. Decision model to calculate optimal quantity of inventory to be ordered is called

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efficient order quantity
economic order quantity
rational order quantity
optimized order quantity
✅ The correct answer is B.
Decision model to calculate optimal quantity of inventory to be ordered is called economic order quantity. Economic Order Quantity (EOQ) is a production formula used to determines the most efficient amount of goods that should be purchased based on ordering and carrying costs.

329. First step in calculation of net present value is to find out

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present value of equity
future value of equity
present value cash flow
future value of cash flow
✅ The correct answer is C.
First step in calculation of net present value is to find out present value cash flow. Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

326. Present value of dividends which is expected to be provided in future is classified as an

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intrinsic value of stock
extrinsic value of stock
intrinsic bonds
extrinsic bonds
✅ The correct answer is A.
Present value of dividends which is expected to be provided in future is classified as an intrinsic value of stock. The intrinsic value of a stock, on the other hand, attempts to boil out the externals and value a company on its own merits. Internal factors like a firm’s products, its management, and the strength of its brands in the marketplace determine intrinsic value. Investors are interested in cash available to stockholders.

323. What is the most appropriate goal of the firm?

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Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization
✅ The correct answer is A.
Shareholder wealth maximization is the most appropriate goal of the firm. Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by stockholders.

320. Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as

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heterogeneous price pool
homogenous cost pool
heterogeneous cost pool
homogenous price pool
✅ The correct answer is B.
Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as homogenous cost pool. A cost pool is a grouping of individual costs, typically by department or service center.

317. Service departments costs should be allocated to:

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Only Service departments
Only Production departments
Both Production and service departments
None of the production and service departments
✅ The correct answer is C.
The service departments render service (benefit) to the production departments. Service departments may exist to provide services of various kinds to other departments. For example, personnel, maintenance, boiler house, pump house, power generation departments are service departments which provide service to the production and other service centres.

353. Relevant ordering costs are added into relevant carrying costs to calculate

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relevant total costs
contribution costs
throughput costs
optimized costs
✅ The correct answer is A.
Relevant ordering costs are added into relevant carrying costs to calculate relevant total costs. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions.

347. Cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as

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quantitative analysis method
qualitative analysis method
account analysis method
conference analysis method
✅ The correct answer is A.
Cost analysis method, which uses mathematical method to use fit between past data observations and cost functions is termed as quantitative analysis method. Quantitative methods emphasize objective measurements and the statistical, mathematical, or numerical analysis of data collected through polls, questionnaires, and surveys, or by manipulating pre-existing statistical data using computational techniques.