MCQ1.

 In cash flow analysis, two projects are compared by using common life is classified as

A. transaction approach
B. replacement chain approach
C. common life approach
D. Both B and C

Ans:d

Answans-ander D

MCQ2. Payback period in which an expected cash flows are discounted with help of project cost
of capital is classified as

A. discounted payback period

B. discounted rate of return
C. discounted cash flows
D. discounted project cost

Ans:A

Answer A

MCQ3. In alternative investments, constant cash flow stream is equal to initial cash flow stream
in approach which is classified as

A. greater annual annuity method

B. equivalent annual annuity
C. lesser annual annuity method
D. zero annual annuity method

Ans:b

Ans:bAnswer B

MCQ4. Present value of future cash flows is INR 2000 and an initial cost is INR 1100 then
profitability index will be

A. 55%
B. 1.82
C. 0.55
D. 1.82%
Ans:b

Answer B

MCQ5. Cash flow which is available for all investors of company is classified as

A. extrinsic stock
B. intrinsic stock
C. investing cash
D. free cash flow

Ans:d

1-The cost reduction technique in comparison to the worth of a product is known as

(A) Reverse engineering

(B) Value engineering

(C) Material engineering

(D) Quality engineering

2-Value analysis examines the

(A) Design of every component

(B) Method of manufacturing

(C) Material used

(D) All of the above

3-Value analysis is normally applied to

(A) New products

(B) Old products

(C) Future products

(D) Both (A) and (B)

4-Value can be defined as the combination of _______ which ensures the ultimate economy and
satisfaction of the customer.
(A) Efficiency, quality, service and price
(B) Efficiency, quality, service and size

(C) Economy, quality, service and price

(D) Efficiency, material, service and price

5-Value is the cost directly proportionate to

(A) Price

(B) Function

(C) Product Material

(D) All of the above

6-The price paid by the buyer is

(A) Cost value

(B) Use value

(C) Esteem value

(D) Exchange value

7-The cost incurred by the manufacturer beyond use value is called

(A) Cost value

(B) Esteem value

(C) Exchange value

(D) None of the above

8-Value analysis is a ____ process

(A) Remedial

(B) Preventive

(C) Continuous

(D) None of the above

 
9-Value analysis should be applied when the following symptom(s) is (are) present
(A) Rate of return on investment is reducing

(B) Reduction in sales of the product

(C) Firm is unable to meet delivery promises

(D) All of the above

10-Who is named as Father of Value Analysis?

(A) Lawrence D. Miles

(B) George Terborgh

(C) Michael Jucius

(D) Edwin B. Flippo

11-Important reason(s) for arising unnecessary costs are

(A) Poor design of product

(B) Too tight specifications

(C) Lack of standardization

(D) All of the above

12-The costs those which neither contributes to function nor the appearance of the product is
called
(A) Extra cost

(B) Unnecessary cost

(C) Esteem cost

(D) Exchange cost

ANSWERS:
1-(B), 2-(D), 3-(B), 4-(A), 5-(B), 6-(B), 7-(B), 8-(A), 9-(D), 10-(A), 11-(D), 12-(B)

Answer D