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900. If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be

$47,000

$57,000

$87,000

$97,000

✅ The correct answer is C.
Flexible budget amount = Operating income + static budget
= $68000 + $19000 = $87,000

901. The most popular type of media in terms of total hours of consumption per year is _____.

television

radio

Internet

newspaper

✅ The correct answer is A.
The most popular type of media in terms of total hours of consumption per year is television. Though consumption of video on digital platforms is on the rise in the country, good old television continues to score in terms of penetration and has large headroom left to fill.

81. Discounting of bill by the drawer is done with

Creditor

Drawee

Bank

Notary public

✅ The correct answer is C.
Discounting of bill by the drawer is done with Bank. An accepted draft or bill of exchange sold for early payment to a bank or credit institution at less than face value after the bank deducts fees and applicable interest charges.

903. Reinvestment risk of bonds is usually higher on

income bonds

callable bonds

premium bonds

default free bonds

✅ The correct answer is B.
Reinvestment risk of bonds is usually higher on callable bonds. A callable bond is a bond that can be redeemed by the issuer prior to its maturity.

904. If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as

applied indirect cost

applied direct cost

incurred indirect cost

over allocated indirect cost

✅ The correct answer is D.
If an allocated indirect cost is $1500 and actual incurred indirect cost is $1200, then this is classified as over allocated indirect cost because the allocated amount is less than actual amount.

82. When will the bill mature if the date of maturity of a bill is a holiday

Holiday itself

Other agreed day

Preceding working day

Next working day

✅ The correct answer is C.
Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.

906. Stationary layout is suitable for manufacturing ___________.

small products

light products

bulky products

technical items

✅ The correct answer is C.
Stationary layout is suitable for manufacturing bulky products. In case of production of large variety of non-standardized products, process layout is ideal.

908. When a market is in equilibrium

No shortage exists

Quantity demanded equals quantity supplied

A price is established that clears the market

All of the above are correct

✅ The correct answer is D.
When a market is in equilibrium No shortage exists, Quantity demanded equals quantity supplied and A price is established that clears the market.

910. Operating leverage examines.

The effect of the change in the quantity on EBIT

The effect of the change in EBIT on the EPS of the company

The effect of the change in output to the EPS of the company

The effect of change in EPS on the output of the company

✅ The correct answer is A.
Operating leverage examines the effect of the change in the quantity on EBIT. Operating leverage is a cost-accounting formula that measures the degree to which a firm or project can increase operating income by increasing revenue. A business that generates sales with a high gross margin and low variable costs has high operating leverage.

912. An option which can be exercised any desired time before an expiry date is classified as

Australian option

money option

European option

American option

✅ The correct answer is D.
An option which can be exercised any desired time before an expiry date is classified as American option. An American option is a put option or call option that can be exercised at any time on or before its expiration date.

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