511. Economies and diseconomies of scale explain why the?
(A) Short-run average fixed cost curve declines so long as output increases.
(B) Marginal cost curve must intersect the minimum point of the firm’s average total cost curve.
C) Long-run average total cost curve is typically U-shaped.
(D) Short-run average variable cost curve is U-shaped.
512. One of the most important tools in cost planning is?
(A) Direct cost
B) Cost Sheet
(C) Budget
(D) Marginal Costing.
513. The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of?
(A) Uncontrollable cost
B) Sunk cost
(C) Avoidable cost
(D) Opportunity cost
514. Which of the following bases is not appropriate for apportionment of Transport department‘s cost?
(A) Crane hours
B) Crane value
(C) Truck Mileage
(D) Truck value
515. Building and furniture are called __?
A: Current asset
B: Fictitious asset
C: Tangible asset
D: Fixed assets
516. The person to whom goods are sold on credit is called___________?
A: Buyer
B: Seller
C: Debtor
D: Creditor
517. Double entry means______________?
A: Entry in two sets of books
B: Entry at two ends
C: Entry at two dates
D: Entry for two aspects of the transaction
518. Discount received is a/an:
A: Asset
B: Expense
C: Liability
D: Revenue
519. Obligations of the Business are known as___________?
A: Liabilities
B: Revenues
C: Expenses
D: Assets
520. The amount invested by the proprietor to start the business is called:
A: Capital
B: Business
C: Drawings
D: All of them
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