Practice Pakistan's most useful MCQs for competitive exams

What refers to a document that shows proof of legal ownership of a financial security ?

• (A)  Bond
• (B)  Bank note
• (C)  Coupon
• (D)  Check

Answer

Submitted By :Ali Uppal

A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even ?

• (A)  2.590
• (B)  2,632
• (C)  2,712
• (D)  2,890

Answer

Submitted By :Ali Uppal

A telephone switchboard 100 pair cable can be made up with either enameled wire or tinned wire. There will be 400 soldered connections. The cost of soldering a connection on the enameled wire will be P 1.65 on the tinned wire, it will be P 1.15. A 100- pair cable made up with enameled wire cost P 0.55 per linear foot and those made up of tinned wire cost P 0.75 per linear foot. Determine the length of cable run in feet so that the cost of each installation would be the same ?

• (A)  1,000 feet
• (B)  1,040 feet
• (C)  1,100 feet
• (D)  1,120 feet

Answer

Submitted By :Ali Uppal

A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand ?

• (A)  1.0 hour per unit
• (B)  1.2 hours per unit
• (C)  1.4 hours per unit
• (D)  1.6 hours per unit

Answer

Submitted By :Ali Uppal

A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000 _________________?

• (A)  1,033
• (B)  1,037
• (C)  1,043
• (D)  1,053

Answer

Submitted By :Ali Uppal

The declining balance method is also known as ____________________?

• (A)  Double percentage method
• (B)  Constant percentage method
• (C)  Modified sinking fund method
• (D)  Modified SYD method

Answer

Submitted By :Ali Uppal

In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?

• (A)  Straight line method
• (B)  Sinking fund method
• (C)  Sum-of-year digit method
• (D)  Declining balance method

Answer

Submitted By :Ali Uppal

In what method of computing depreciation where it assumes that a sinking fund is established in which funds will accumulate for replacement purposes ?

• (A)  Straight line method
• (B)  Sinking fund method
• (C)  Sum-of-year digit method
• (D)  Declining balance method

Answer

Submitted By :Ali Uppal

In what method of computing depreciation where it assumes that the loss in value is directly proportional to the age of the equipment or asset ?

• (A)  Straight line method
• (B)  Sinking fund method
• (C)  Sum-of-year digit method
• (D)  Declining balance method

Answer

Submitted By :Ali Uppal

What is defined as the reduction or fall of the value of an asset due to constant use and passage of time ?

• (A)  Depletion
• (B)  Inflation
• (C)  Depreciation
• (D)  Deflation

Answer

Submitted By :Ali Uppal