Correct Answer:
D. The benefit given up by choosing one alternative over the next best alternative
Opportunity cost measures the value of the best alternative forgone.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Opportunity cost is:
Related MCQs
Information is considered material if its omission or misstatement could:
A.
Change the audit fee
B.
Affect only the auditor's working papers
C.
Influence the economic decisions of users taken on the basis of the financial statements
D.
Be corrected without any disclosure
Correct answer is:
C. Influence the economic decisions of users taken on the basis of the financial statements
Do you agree with this answer?
A proportional (flat) tax:
A.
Charges higher rates on higher incomes
B.
Charges the same percentage rate at all income levels
C.
Charges lower rates on higher incomes
D.
Exempts all incomes
Correct answer is:
B. Charges the same percentage rate at all income levels
Do you agree with this answer?
A transfer price is:
A.
The price charged to external customers
B.
The price of raw materials from suppliers only
C.
The price at which goods or services are transferred between divisions of the same organization
D.
A government-regulated price
Correct answer is:
C. The price at which goods or services are transferred between divisions of the same organization
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Using the Gordon growth model, next year's dividend is Rs. 6, the required return is 12% and growth is 4%. The share price is:
A.
Rs. 50
B.
Rs. 75
C.
Rs. 37.5
D.
Rs. 150
Correct answer is:
B. Rs. 75
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An audit to determine whether an entity has followed applicable laws, rules and regulations is called a:
A.
Statutory audit of cash only
B.
Compliance audit
C.
Forensic valuation
D.
Payroll review
Correct answer is:
B. Compliance audit
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Control risk is the risk that a material misstatement:
A.
Will not be detected by the auditor's procedures
B.
Occurs because of changes in tax law
C.
Occurs only in cash transactions
D.
Will not be prevented or detected on a timely basis by the entity's internal control
Correct answer is:
D. Will not be prevented or detected on a timely basis by the entity's internal control
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