46. A flexible budget takes into account the fact that when production levels ch

Question

46. A flexible budget takes into account the fact that when production levels change
a) total fixed costs remain the same.
b) variable costs per unit changes.
c) fixed costs per unit remain the same.
d) None of the above is true.



54. Evaluating segments based on the segment’s return on investment will:

a) encourage each segment’s manager to select only projects that are above the company’s current return on investment.
b) encourage each segment’s manager to only select projects that are above the individual segment’s current return on investment.
c) encourage each segment’s manager to select only projects above the company’s required rate of return.
d) encourage managers to select only projects above the current return on investment of the highest segment in the company


38. If the internal rate of return is used to calculate the net present value of a project, the net present value will be zero.
True
False

Explanation / Answer

46. a 54. b 38. True

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