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.
| 101. |
Of the cost allocation base, the difference between actual and budgeted variable overhead cost multiplied by actual quantity for actual output is classified as |
| A. | variable overhead spending variance |
| B. | fixed overhead spending variance |
| C. | constant spending variance |
| D. | potential spending variance |
| Answer» B. fixed overhead spending variance | |
| 102. |
The movement of price or the rise or fall of prices of options is classified as |
| A. | option lattice |
| B. | pricing movement |
| C. | price change |
| D. | binomial lattice |
| Answer» E. | |
| 103. |
The contribution margin of bundle is $4000 and the revenue of the bundle is $16000 then the contribution margin percentage for bundle is |
| A. | 0.1 |
| B. | 0.15 |
| C. | 0.25 |
| D. | 0.35 |
| Answer» D. 0.35 | |
| 104. |
The increase in value of option leads to low present value of exercise cost only if |
| A. | low volatility |
| B. | interest rates are high |
| C. | interest rates are low |
| D. | high volatility |
| Answer» C. interest rates are low | |
| 105. |
If the current price increases from lower to higher then the |
| A. | option value equal to one |
| B. | option value will increase |
| C. | option value will decrease |
| D. | option value equal to zero |
| Answer» C. option value will decrease | |
| 106. |
The flexible budget variance for the revenues of company is classified as |
| A. | selling price variance |
| B. | investment variance |
| C. | profit variance |
| D. | primary variance |
| Answer» B. investment variance | |
| 107. |
The cost which consists of some fixed and some variable cost with respect to machine setup hours is classified as |
| A. | setup cost |
| B. | batch cost |
| C. | facility cost |
| D. | lump sum cost |
| Answer» B. batch cost | |
| 108. |
The factors that can affect nominal interest rates in financial transactions includes |
| A. | special provisions |
| B. | liquidity and default risk |
| C. | inflation and real interest arte |
| D. | all of above |
| Answer» E. | |
| 109. |
The funds provided by the suppliers of the funds in the financial markets are classified as |
| A. | compounded funds |
| B. | savings funds |
| C. | supply of loan-able funds |
| D. | demand of loan-able funds |
| Answer» D. demand of loan-able funds | |
| 110. |
According to the Black Scholes model, the trading of securities and the stock prices moves respectively |
| A. | constant and randomly |
| B. | randomly and constant |
| C. | randomly and continuously |
| D. | continuously and randomly |
| Answer» E. | |
| 111. |
The pricing model approach in which it is assumed that stock price can have one of the two values of stock is classified as |
| A. | valued approach |
| B. | marketability approach |
| C. | stock approach |
| D. | binomial approach |
| Answer» E. | |
| 112. |
The investor who buys shares and writes a call option on stock is classified as |
| A. | put investor |
| B. | call investor |
| C. | hedger |
| D. | volatile hedge |
| Answer» D. volatile hedge | |
| 113. |
The variable overhead flexible budget variance is $37000 and the flexible budget amount is $10000 then the actual incurred costs are |
| A. | $27,000 |
| B. | $25,000 |
| C. | $47,000 |
| D. | $57,000 |
| Answer» D. $57,000 | |
| 114. |
The static budget amount is $6000 and the flexible budget amount is $15000 then the sales volume variance is |
| A. | $9,000 |
| B. | $8,000 |
| C. | $12,000 |
| D. | $21,000 |
| Answer» B. $8,000 | |
| 115. |
The number of units are 3000 and the per unit price is $500 then the flexible budget variable is |
| A. | $1,500,000 |
| B. | $2,500,000 |
| C. | $3,500,000 |
| D. | $4,500,000 |
| Answer» B. $2,500,000 | |
| 116. |
The actual selling price is $500, the actual result is $250 and the actual units sold are 350 then the selling price variance is |
| A. | $87,500 |
| B. | $97,500 |
| C. | $67,500 |
| D. | $57,500 |
| Answer» B. $97,500 | |
| 117. |
The revenue is $11000 and all the variable cost is $6000 then the contribution margin is |
| A. | −$17000 |
| B. | $17,000 |
| C. | $5,000 |
| D. | −$5000 |
| Answer» D. −$5000 | |
| 118. |
The interest rate equilibrium is increased and the supply curve of funds shifts to the left or upward is the result of |
| A. | increase in future value |
| B. | decrease in future value |
| C. | increase in total wealth |
| D. | decrease in total wealth |
| Answer» E. | |
| 119. |
The process of ensuring preventive measure to be done in all machines is classified as |
| A. | potential price response |
| B. | potential cost response |
| C. | potential budget response |
| D. | potential management response |
| Answer» E. | |
| 120. |
In financial markets, the decrease in investment results in |
| A. | increase in interest rate |
| B. | decrease in interest rate |
| C. | increase in availability |
| D. | decrease in availability |
| Answer» B. decrease in interest rate | |
| 121. |
In the stock option, the little chance exists for large gain on stock when the price of stock |
| A. | volatile movement |
| B. | moves freely |
| C. | rarely moves |
| D. | stays same |
| Answer» D. stays same | |
| 122. |
The budgeted quantity of output unit is 450 and budgeted overhead fixed cost is $250 then budgeted fixed overhead output unit is |
| A. | $142,500 |
| B. | $112,500 |
| C. | $122,500 |
| D. | $132,500 |
| Answer» C. $122,500 | |
| 123. |
The actual cost incurred is $627500 and the flexible budget amount is $358750 then fixed overhead variance of flexible-budget is |
| A. | $218,750 |
| B. | $238,750 |
| C. | $258,750 |
| D. | $268,750 |
| Answer» E. | |
| 124. |
The stock option considered more valuable in the situation when the stock is |
| A. | price hike in market |
| B. | market stability |
| C. | not volatile |
| D. | highly volatile |
| Answer» E. | |
| 125. |
The current option $700 and the current value of stock in portfolio $1400 then the present value of portfolio is |
| A. | −$700 |
| B. | $2,100 |
| C. | $700 |
| D. | 0.02 |
| Answer» D. 0.02 | |
| 126. |
The step of installing production scheduling procedure to improve plant operations is considered as |
| A. | potential cost response |
| B. | potential budget response |
| C. | potential management response |
| D. | potential price response |
| Answer» D. potential price response | |
| 127. |
The investor who writes the stock call options in his own portfolio is classified as |
| A. | due option |
| B. | covered option |
| C. | undue option |
| D. | uncovered option |
| Answer» C. undue option | |
| 128. |
The sales budget variance is subtracted from flexible budget amount to calculate |
| A. | static budget amount |
| B. | unstated amount |
| C. | constant amount |
| D. | variable amount |
| Answer» B. unstated amount | |
| 129. |
When two portfolios have identical values and identical payoffs then this is classified as |
| A. | binomial parity relationship |
| B. | put parity relationship |
| C. | put option parity relationship |
| D. | put call parity relationship |
| Answer» E. | |
| 130. |
The flexible budget amount is $82000 and the actual result is $45000 then the flexible budget amount is |
| A. | $97,000 |
| B. | $87,000 |
| C. | $27,000 |
| D. | $37,000 |
| Answer» E. | |
| 131. |
According to the Black Scholes model, the call option is well exercised on its |
| A. | mid buying date |
| B. | expiry date |
| C. | buying date |
| D. | mid selling date |
| Answer» C. buying date | |
| 132. |
The fixed overhead allocated for actual output unit is $9800 and budgeted fixed overhead is $22000 then production volume variance is |
| A. | $31,800 |
| B. | $12,300 |
| C. | $12,200 |
| D. | $41,800 |
| Answer» D. $41,800 | |
| 133. |
The current option price is added to present value of portfolio to calculate |
| A. | future value of portfolio |
| B. | current value of stock |
| C. | future value of stock |
| D. | present value of portfolio |
| Answer» C. future value of stock | |
| 134. |
The fixed setup cost is $32000 and the variable setup cost is $12000 then the setup cost is |
| A. | $20,000 |
| B. | $34,000 |
| C. | $44,000 |
| D. | $35,000 |
| Answer» D. $35,000 | |
| 135. |
The flexible budget amount is subtracted form the actual result to calculate |
| A. | unstated budget variance |
| B. | flexible budget variance |
| C. | constant budget variance |
| D. | static budget variance |
| Answer» C. constant budget variance | |
| 136. |
The gross margin is divided by revenues to calculate the |
| A. | income margin percentage |
| B. | gross margin percentage |
| C. | cost margin percentage |
| D. | sales margin percentage |
| Answer» C. cost margin percentage | |
| 137. |
The present value of portfolio $500 and the current option price $1200 then the value of stock included in portfolio is |
| A. | $1,700 |
| B. | −$1700 |
| C. | $700 |
| D. | −$700 |
| Answer» B. −$1700 | |
| 138. |
If the risk of financial security increases and the supply curve shifts to the left then the impact on equilibrium of interest rate must |
| A. | decreases |
| B. | increases |
| C. | positive |
| D. | negative |
| Answer» C. positive | |
| 139. |
In the option pricing, the increase in option price is due to |
| A. | time of expiry increases |
| B. | time of expiry decreases |
| C. | exchange time increases |
| D. | exchange time decreases |
| Answer» B. time of expiry decreases | |
| 140. |
If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000 then budgeted fixed overhead is |
| A. | $34,000 |
| B. | $24,000 |
| C. | $16,000 |
| D. | $18,000 |
| Answer» B. $24,000 | |
| 141. |
The variance is solely because of the difference between budgeted quantity and the |
| A. | flexible hours |
| B. | actual cost |
| C. | actual quantity |
| D. | actual price |
| Answer» D. actual price | |
| 142. |
The gross margin is $9000 and the cost of goods sold is $8000 then the revenue is |
| A. | $1,000 |
| B. | −$1000 |
| C. | $17,000 |
| D. | −$17000 |
| Answer» D. −$17000 | |
| 143. |
The value which converts series of equal payments in to the value received at beginning of investment is classified as |
| A. | decreased value of annuity |
| B. | increased value of annuity |
| C. | present value of annuity |
| D. | future value of annuity |
| Answer» D. future value of annuity | |
| 144. |
The contribution margin is $3000 and the revenues are $9000 then all the variable costs are |
| A. | $12,000 |
| B. | $6,000 |
| C. | −$6000 |
| D. | −$12000 |
| Answer» C. −$6000 | |
| 145. |
The actual cost incurred is $387500 and the flexible budget amount is $168750 then fixed overhead variance of flexible budget is |
| A. | $518,750 |
| B. | $418,750 |
| C. | $218,750 |
| D. | $318,750 |
| Answer» D. $318,750 | |
| 146. |
The current option $800 and the current value of stock in portfolio $1900 then the present value of portfolio is |
| A. | −$1100 |
| B. | $2,700 |
| C. | $1,100 |
| D. | −$2700 |
| Answer» D. −$2700 | |
| 147. |
Which disease afflicted Flannery O’Connor? |
| A. | Alzheimer’s disease |
| B. | Parkinson’s disease |
| C. | Agranulocytic angina |
| D. | Lupus erythematosus |
| Answer» E. | |
| 148. |
The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150 then budgeted fixed overhead output unit is |
| A. | $67,500 |
| B. | $57,500 |
| C. | $47,500 |
| D. | $37,500 |
| Answer» E. | |
| 149. |
The plant and equipment are examples of |
| A. | long term fixed assets |
| B. | short term fixed assets |
| C. | short term working capital |
| D. | long term working capital |
| Answer» B. short term fixed assets | |
| 150. |
According to the Black Scholes model, the rate which is constant and known is classified as |
| A. | short term return rate |
| B. | long term return rate |
| C. | risk free interest rate |
| D. | risky rate of return |
| Answer» D. risky rate of return | |