MCQOPTIONS
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MCQOPTIONS
This section includes 253 Mcqs, each offering curated multiple-choice questions to sharpen your Avionics knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
In the options pricing, the exercise price rise from lower to higher leads to |
| A. | volatile options |
| B. | option value increases |
| C. | option value decreases |
| D. | option value stable |
| Answer» D. option value stable | |
| 52. |
The fixed setup cost is $21000 and the variable setup cost is $11000 then the setup cost is |
| A. | $12,000 |
| B. | $15,000 |
| C. | $10,000 |
| D. | $32,000 |
| Answer» E. | |
| 53. |
The shift of demand curve to down and to the left then there must be |
| A. | support from world bank |
| B. | decreases in funds traded |
| C. | increase in funds traded |
| D. | rise of international funds |
| Answer» C. increase in funds traded | |
| 54. |
The loan-able funds theory is used to determine |
| A. | savings |
| B. | interest rate |
| C. | future value |
| D. | present value |
| Answer» C. future value | |
| 55. |
If the equilibrium interest rate increases and the curve of funding supplied shifts to the left then the impact on spending is |
| A. | increase in near term |
| B. | decrease in near term |
| C. | increase in long term |
| D. | decrease in long term |
| Answer» B. decrease in near term | |
| 56. |
The fixed overhead allocated for actual output unit is subtracted from budgeted fixed overhead to calculate |
| A. | budget variance |
| B. | production volume variance |
| C. | price volume variance |
| D. | cost volume variance |
| Answer» C. price volume variance | |
| 57. |
The flexible budget amount is added in to fixed overhead flexible budget variance to calculate |
| A. | incurred manufacturing |
| B. | incurred production cost |
| C. | actual incurred cost |
| D. | incurred labor cost |
| Answer» D. incurred labor cost | |
| 58. |
The long-term equity anticipation security is usually classified as |
| A. | short-term options |
| B. | long-term options |
| C. | short money options |
| D. | yearly call |
| Answer» C. short money options | |
| 59. |
In cost accounting, the financial way of charging price for product above the cost of acquiring or producing the goods is classified as |
| A. | sales margin |
| B. | cost margin |
| C. | gross margin |
| D. | income margin |
| Answer» D. income margin | |
| 60. |
The interest rate equilibrium is decreased and the supply curve of funds shifts to the right is the result of |
| A. | increase in total wealth |
| B. | decrease in total wealth |
| C. | increase in future value |
| D. | decrease in future value |
| Answer» B. decrease in total wealth | |
| 61. |
The type of options that do not have the stock in portfolio to back up the options is classified as |
| A. | undue options |
| B. | due options |
| C. | naked options |
| D. | total options |
| Answer» D. total options | |
| 62. |
According to put call parity relationship, the call option minus put option plus present value of exercise is equal to |
| A. | binomial property |
| B. | constant property |
| C. | constant and variable property |
| D. | stock |
| Answer» E. | |
| 63. |
For the specific basket of goods and services, the rise in the price on continual basis is considered as |
| A. | fall in globalization |
| B. | rise in globalization |
| C. | rise in demand |
| D. | inflation |
| Answer» E. | |
| 64. |
The option that gives investors the right to sell a stock at predefined price is classified as |
| A. | put option |
| B. | call option |
| C. | money back options |
| D. | out of money options |
| Answer» B. call option | |
| 65. |
The second step in binomial approach of option pricing is to define range of values |
| A. | at expiration |
| B. | at buying date |
| C. | at exchange closing time |
| D. | at exchange opening time |
| Answer» B. at buying date | |
| 66. |
The type of option which cannot be exercised before the expiry date is classified as |
| A. | European option |
| B. | American option |
| C. | Australian option |
| D. | money option |
| Answer» B. American option | |
| 67. |
The type of distribution which describes whether events to be occurred are mutually exclusive or collectively exhaustive is classified as |
| A. | mutual distribution |
| B. | probability distribution |
| C. | collective distribution |
| D. | marginal distribution |
| Answer» C. collective distribution | |
| 68. |
The budgeted total cost in fixed overhead is $465200 and the budgeted total quantity is $8750 then budgeted fixed overhead cost per unit is |
| A. | $83.17 |
| B. | $73.17 |
| C. | $53.17 |
| D. | $63.17 |
| Answer» D. $63.17 | |
| 69. |
the current value of stock in portfolio is $50 and the current option price is $20 then present value of portfolio is |
| A. | $30 |
| B. | $70 |
| C. | 0.0167 |
| D. | 0.3 |
| Answer» B. $70 | |
| 70. |
According to the Black Scholes model, the purchaser can borrow fraction of security at risk free interest rate which is |
| A. | short term |
| B. | long term |
| C. | transaction cost |
| D. | no transaction cost |
| Answer» B. long term | |
| 71. |
The flexible budget amount is $21500 and fixed overhead flexible budget variance is $10000 then actual incurred cost is |
| A. | $61,500 |
| B. | $31,500 |
| C. | $41,500 |
| D. | $51,500 |
| Answer» C. $41,500 | |
| 72. |
The actual variable quantity is 70,the actual and budgeted overhead cost of allocation is $8650 and $3500 respectively then the variable overhead spending variance is |
| A. | $660,500 |
| B. | $560,500 |
| C. | $460,500 |
| D. | $360,500 |
| Answer» E. | |
| 73. |
When interest rate is higher than equilibrium rate of borrowing loanable funds then the financial system has |
| A. | short-term funds |
| B. | long-term funds |
| C. | surplus of funds |
| D. | deficit of funds |
| Answer» D. deficit of funds | |
| 74. |
The types of option markets and types does not include |
| A. | European option |
| B. | American option |
| C. | expiry option |
| D. | covered options |
| Answer» D. covered options | |
| 75. |
If the demand of loanable demands increases then the borrowing cost of funds is |
| A. | higher |
| B. | zero |
| C. | upside |
| D. | lower |
| Answer» B. zero | |
| 76. |
The fixed overhead allocated for actual output unit is $7500 and budgeted fixed overhead is $21000 and production volume variance is |
| A. | $16,500 |
| B. | $15,500 |
| C. | $14,500 |
| D. | $13,500 |
| Answer» E. | |
| 77. |
In manufacturing settings, the budgeted fixed overhead rate is classified as |
| A. | production numerator level |
| B. | production denominator level |
| C. | production cost level |
| D. | production fixed level |
| Answer» C. production cost level | |
| 78. |
To calculate fixed overhead flexible budget variance, the actual costs incurred is subtracted from |
| A. | flexible budget amount |
| B. | constant amount |
| C. | variable amount |
| D. | production amount |
| Answer» B. constant amount | |
| 79. |
The current value of stock included in portfolio is subtracted from current option price to calculate |
| A. | future value of stock |
| B. | present value of portfolio |
| C. | future value of portfolio |
| D. | present value of stock |
| Answer» C. future value of portfolio | |
| 80. |
If the stock market price is higher than the strike price then the call option |
| A. | price is lower |
| B. | rate is higher |
| C. | price is higher |
| D. | rate is lower |
| Answer» D. rate is lower | |
| 81. |
The equilibrium interest rate increases and the economic conditions decreases then supply curve must shift to |
| A. | down and to the left |
| B. | down and to the right |
| C. | up and to the left |
| D. | up and to the right |
| Answer» D. up and to the right | |
| 82. |
The actual result is $25000 and the flexible budget amount is $11000 then the flexible budget amount is |
| A. | $36,000 |
| B. | $46,000 |
| C. | $56,000 |
| D. | $14,000 |
| Answer» E. | |
| 83. |
The first step in binomial approach of option pricing is to |
| A. | define ending price of stock |
| B. | define beginning price of stock |
| C. | define range of values |
| D. | define domain of values |
| Answer» B. define beginning price of stock | |
| 84. |
The difference between the flexible budget amount and the corresponding actual result is classified as |
| A. | corresponding variance |
| B. | resultant variance |
| C. | flexible budget variance |
| D. | static budget variance |
| Answer» D. static budget variance | |
| 85. |
The static budget is $405000 and the flexible budget amount is $620000 then the sales budget variance is |
| A. | $215,000 |
| B. | $315,000 |
| C. | $415,000 |
| D. | $515,000 |
| Answer» B. $315,000 | |
| 86. |
If fixed overhead allocated for actual output units is $36000 and the production volume variance is $7000 then budgeted fixed overhead is |
| A. | $43,000 |
| B. | $42,000 |
| C. | $29,000 |
| D. | $19,000 |
| Answer» B. $42,000 | |
| 87. |
The type of distribution which consists of alternative outcomes and probabilities of events is classified as |
| A. | event table |
| B. | outcome table |
| C. | decision table |
| D. | probability table |
| Answer» D. probability table | |
| 88. |
The option which can be exercised any desired time before the expiry date is classified as |
| A. | Australian option |
| B. | money option |
| C. | European option |
| D. | American option |
| Answer» E. | |
| 89. |
The theory which states that interest equilibrium is result of demand and supply in trading market is classified as |
| A. | saving fund theory |
| B. | constant funds |
| C. | borrowed theory |
| D. | loanable funds theory |
| Answer» E. | |
| 90. |
If the equilibrium interest rate increases with respect to increase in interest rate, then the movement along the supply of funds curve is |
| A. | shift left |
| B. | shift right |
| C. | upside movement |
| D. | downside movement |
| Answer» D. downside movement | |
| 91. |
The value of stock is $250 and the call option obligation is $100 then the current value of portfolio is |
| A. | 0.35 times |
| B. | $150 |
| C. | $350 |
| D. | $2.50 |
| Answer» C. $350 | |
| 92. |
The breakeven revenue is $220000 and the revenue per bundle is $10000 then the number of bundles to be sold to breakeven are |
| A. | 32 bundle |
| B. | 22 bundle |
| C. | 42 bundle |
| D. | 38 bundle |
| Answer» C. 42 bundle | |
| 93. |
The excess of actual price of option over the exercise value of option is classified as |
| A. | time value of option |
| B. | actual options |
| C. | estimated options |
| D. | optional pricing |
| Answer» B. actual options | |
| 94. |
According to exercise value and option price, the market value of the option will be zero when |
| A. | stock price is maximum |
| B. | option price is zero |
| C. | stock price is zero |
| D. | stock price is minimum |
| Answer» D. stock price is minimum | |
| 95. |
The value of the option which is considered as its worth as soon as it is expired is classified as |
| A. | minimum option value |
| B. | minimum value |
| C. | maximum value |
| D. | exercise value |
| Answer» E. | |
| 96. |
The usage of more resources to develop fundamental standards is classified as |
| A. | potential budget response |
| B. | potential management response |
| C. | potential price response |
| D. | potential cost response |
| Answer» C. potential price response | |
| 97. |
The economic results that are predicted for possible combinations of events are classified as |
| A. | margin |
| B. | distribution |
| C. | collection |
| D. | outcome |
| Answer» E. | |
| 98. |
The cost of indirect support labor is $5000, equipment maintenance setup cost is $7000 and machinery leasing cost is $4000 then variable fixed cost is |
| A. | $16,000 |
| B. | $12,000 |
| C. | $18,000 |
| D. | $21,000 |
| Answer» C. $18,000 | |
| 99. |
The first step in developing cost rate for budgeted variable overhead is to |
| A. | choose the budgeting period |
| B. | select allocation bases |
| C. | identify variable overhead cost |
| D. | compute the per unit rate |
| Answer» B. select allocation bases | |
| 100. |
All the choices for decision that are easily available to managers are classified as |
| A. | outcome |
| B. | actions |
| C. | events |
| D. | distribution |
| Answer» C. events | |