art mcqs

A risk associated with project and way considered by well diversified stockholder is classified as

by
A) expected risk
B) beta risk
C) industry risk
D) returning risk
✅ ANSWER: B
A risk associated with project and way considered by well diversified stockholder is classified as beta risk. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta risk is the probability that a false hypothesis will be accepted by a statistical test.

System which measures budget, action and plan of each responsibility center is known as

by
A) budgeted accounting
B) action accounting
C) planned accounting
D) responsibility accounting
✅ ANSWER: D
System which measures budget, action and plan of each responsibility center is known as responsibility accounting. Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs.

Which of the following denotes the underwriter’s role in an insurance company?

by
A) Process claims
B) Decide acceptability of risks
C) Product design architect
D) Customer relations manager
✅ ANSWER: B
the underwriter’s role in an insurance company is to decide acceptability of risks. Underwriters work in several insurance categories, including health, life, auto and home. Their job is to review applications for insurance, analyze risks and decide whether the company will offer coverage. Underwriters must approve applications so that the insurance company can collect premiums.

Those cost which is incurred to prevent the labour turnover __________.

by
A) management cost
B) replacement cost
C) preventive cost
D) compensation cost
✅ ANSWER: C
Those cost which is incurred to prevent the labour turnover is known as preventive cost. These are costs which are incurred to prevent excessive labour turnover. The aim of these costs is to keep the workers satisfied so that they may not leave the factory.

In Unit Linked policies, the risk cover is a multiple of _________

by
A) Fund Value
B) Accumulations
C) Net Asset Value
D) Premiums
✅ ANSWER: D
In Unit Linked policies, the risk cover is a multiple of Premiums. A unit linked insurance plan (ULIP) is an investment product that provides for insurance payout benefits. ULIP offerings are primarily concentrated in India. The investment vehicle requires a premium payment which is invested in investment products for capital appreciation.

Direct cost assignment for specific cost object is classified as

by
A) cost object line cost
B) cost tracing
C) cost object indirect cost
D) cost object staff cost
✅ ANSWER: B
Direct cost assignment for specific cost object is classified as cost tracing. Cost tracing is the process of directly matching a cost with a product being produced, where cost allocation uses estimates to apply costs to products.

A firm encounters its ‘shutdown point’ when

by
A) Average total cost equals price at the profit-maximizing level of output
B) Average variable cost equals price at the profit-maximizing level of output
C) Average fixed cost equals price at the profit-maximizing level of output
D) Marginal cost equals price at the profit-maximizing level of output
✅ ANSWER: B
A firm encounters its ‘shutdown point’ when average variable cost equals price at the profit-maximizing level of output.