Management MCQs

__________cost refers to the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value.

by
A. Total
B. Variable
C. Life cycle
D. Net
✅ The correct answer is option C.
Life cycle cost refers to the product’s purchase cost plus the discounted cost of maintenance and repair less the discounted salvage value. Life-cycle costing is a method of calculating the total cost of ownership over the life span of the industrial product. It can be especially useful in the marketing of industrial products that sell for high initial prices, but which provide long-run cost savings.

What are designed to guide managers in the pursuit and achievement of strategies and objectives?

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A. Procedures
B. Budgets
C. Policies
D. Plans
✅ The correct answer is option C.
Policies are designed to guide managers in the pursuit and achievement of strategies and objectives. Policies are instrument for strategy implementation. This thesis defines policy much more narrowly as specific guides to managerial action and decisions in the implementation of strategy.

In the strategic marketing process, once you get results you go into the:

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A. control phase
B. marketing plan
C. planning phase
D. marketing program
✅ The correct answer is option A.
In the strategic marketing process, once you get results you go into the control phase. The evaluation phase is the checking phase. This process involves ensuring that the results of the program are in line with the goals set. The marketing team, especially the manager will need to observe any deviations in the plan and quickly correct negative deviations to get back on course.

In Capital Market Line every investment is

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A. infinitely divisible
B. finitely divisible
C. a & b
D. all of answer correct
✅ The correct answer is option A.
In Capital Market Line every investment is infinitely divisible. The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios.

According to futures contract, long position states

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A. purchase of forward contracts
B. purchase of future contract
C. sale of futures contract
D. sales of forward contracts
✅ The correct answer is option B.
According to futures contract, long position states purchase of future contract. A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange.

The following factor would be relatively low if supply of labour is higher than demand.

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A. production
B. labour cost
C. wage
D. all of the above
✅ The correct answer is option C.
Wage factor would be relatively low if supply of labour is higher than demand. Wages are the price that workers receive for their labor in the form of salaries, bonuses, royalties, commissions, and fringe benefits, such as paid vacations, health insurance, and pensions.

If risk of financial security increases and supply curve shifts to left then impact on equilibrium of interest rate must

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A. decreases
B. increases
C. positive
D. negative
✅ The correct answer is option B.
If risk of financial security increases and supply curve shifts to left then impact on equilibrium of interest rate must increases.

Fixed cost is added to target operating income and then divided to contribute margin per unit to calculate

by
A. quantity of units required to sold
B. selling of units
C. sold units
D. contributed units
✅ The correct answer is option A.
Fixed cost is added to target operating income and then divided to contribute margin per unit to calculate quantity of units required to sold.