Financial Management
561. EOQ is the quantity that minimizes
- Total Ordering Cost
- Total Inventory Cost
- Total Interest Cost
- Safety Stock Level
Correct answer: (A)
Total Ordering Cost
562. EOQ determines the order size when
- Total Order cost is Minimum
- Total Number of order is least
- Total inventory costs are minimum
- None of the above
Correct answer: (C)
Total inventory costs are minimum
563. Which of the following is not a standard method of inventory valuation?
- First in First out
- Standard Cost
- Average Pricing
- Realizable Value
Correct answer: (C)
Average Pricing
564. Which of the following is not a spontaneous source of short-term funds?
- Trade credit
- Accrued expenses
- Provision for dividend
- All of the above
Correct answer: (C)
Provision for dividend
565. In lease system, interest is calculated on
- Cash down payment
- Cash price outstanding
- Hire purchase price
- None of the above
Correct answer: (B)
Cash price outstanding
566. Lease which includes a third party (a lender) is known as
- Sale and leaseback
- Direct Lease
- Inverse Lease
- Leveraged Lease
Correct answer: (D)
Leveraged Lease
567. In Risk-Adjusted Discount Rate method, the normal rate of discount is:
- Increased
- Decreased
- Unchanged
- None of the above
Correct answer: (A)
Increased
568. The term 'EVA' is used for:
- Extra Value Analysis
- Economic Value Added
- Expected Value Analysis
- Engineering Value Analysis
Correct answer: (B)
Economic Value Added
569. Suppliers and Creditors of a firm are interested in
- Profitability Position
- Liquidity Position
- Market Share Position
- Debt Position
Correct answer: (B)
Liquidity Position
570. Capital Budgeting Decisions are:
- Reversible
- Irreversible
- Unimportant
- All of the above
Correct answer: (B)
Irreversible