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1. If direct material cost is $5500 and prime cost is $25000, then direct manufacturing labour would be

A) $19,500

B) $30,500

C) $45,500

D) $22,500

✅ ANSWER: A
Direct manufacturing labour = Prime cost – Direct material cost
= $25000 – $5500 = $19,500

2. LIFO method of pricing of materials is more suitable when _________.

A) material prices are rising

B) material prices are falling

C) material prices are constant

D) material prices are fluctuating

✅ ANSWER: A
LIFO method of pricing of materials is more suitable when material prices are rising. LIFO method of pricing issues is suitable because materials are issued at the current market prices which are high. This method thus helps in showing a lower profit because of increased charge to production during periods of rising prices and lower profit reduces burden of income-tax.

3. Traditional cash value plans are also known as

A) Unbundled plans

B) Bundled plans

C) Annuity

D) ULIP

✅ ANSWER: B
Traditional cash value plans are also known as Bundled plans. Bundled plans consist of multiple types of health coverage that a consumer can purchase together, typically with one integrated premium. The plans are generally designed to complement each other, or to provide varying benefits.

4. A bill of exchange is called a ____ by one who is liable to pay it on the due date

A) Bill receivable

B) Noted bill of exchange

C) Bill payable

D) None of the above

✅ ANSWER: C
A bill of exchange is called a Bill payable by one who is liable to pay it on the due date. It is a written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), for payment of goods and/or services received.

5. Static budget amount is subtracted from flexible budget amount to calculate the

A) sales budget variance

B) cost budget variance

C) resultant budget variance

D) static budget variance

✅ ANSWER: A
Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance. A sales budget is management’s estimate of sales for a future financial period. A business uses sales budgets to set department goals, estimate earnings and forecast production requirements.

6. Tracking stock of company is also classified as

A) target stock

B) dividend stock

C) firm part stock

D) tied stock

✅ ANSWER: A
Tracking stock of company is also classified as target stock. Target Stock means any Target Preferred Stock and/or any Target Common Stock.

7. If an agent is found guilty of criminal misappropriation the designated person will _ ,_

A) Cancel the license

B) Issue a duplicate license

C) Renew the existing license

D) Take some fees from the agent

✅ ANSWER: A
If an agent is found guilty of criminal misappropriation the designated person will Cancel the license.

8. The expected return on an investment in stock is___________.

A) the expected dividend payments

B) the anticipated capital gains

C) the sum of expected dividends and capital gains

D) less than the realized return

✅ ANSWER: C
The expected return on an investment in stock is the sum of expected dividends and capital gains. The expected return on an investment is the expected value of the probability distribution of possible returns it can provide to investors.

9. Which of the following is not a dimension of privacy?

A) Need for personal space

B) Need to feel in control of our possessions

C) Need to feel in control of our personal information

D) All of the above are dimensions of privacy

✅ ANSWER: D
Need for personal space, Need to feel in control of our possessions and Need to feel in control of our personal information all are dimension of privacy.

10. Labour turnover is ______.

A) productivity of labour

B) efficiency of the labour

C) change in labour force

D) total cost of the labour

✅ ANSWER: C
Labour turnover is change in labour force. Labour turnover may be defined as the number of workers replaced during a given period relative to the average labour force during the period. It is the number of workers who left the job during a period relative to the average labour force during the period.