Cost Analysis Quiz

Which index tracks cost changes over time?

• Fox factor

• Lang factor

• Scale factor

• CEI (Chemical Engineering Index)

Cost scaling uses size ratio raised to the power of:

• 1.0

• 0.2

• 0.6

• 2.0

Break-even point occurs when Total Revenue (TR) equals Total Cost (TC):

• NPV = 0 (Net Present Value = 0)

• MR = MC (Marginal Revenue = Marginal Cost)

• TR = TC (Total Revenue = Total Cost)

• ROI = 1 (Return on Investment = 1)

Profit-Volume ratio (P/V) equals:

• VC / Sales (Variable Cost / Sales)

• Sales / CM (Sales / Contribution Margin)

• CM / Sales (Contribution Margin / Sales)

• Sales / VC (Sales / Variable Cost)

Payback period ignores TVM (Time Value of Money):

• TVM (Time Value of Money)

• Cash flows

• Initial investment

• Salvage value

MIRR (Modified Internal Rate of Return) addresses the:

• Salvage Value

• Discount rate

• Tax shields

• Reinvestment rate

Which depreciation method uses activity level?

• Units-of-Production

• Straight-line

• SYD (Sum-of-Years'-Digits)

• Declining-balance

Corporate tax is applied to:

• Book profit

• Revenue

• Taxable income

• Salvage proceeds

Sensitivity analysis systematically varies:

• Multiple variables

• One variable

• All variables

• No variables

Inflation adjustment uses a:

• Scale factor

• Lang factor

• Cost index

• ROI (Return on Investment)