Correct Answer:
D. Total risk (variability of returns)
A higher standard deviation indicates greater dispersion of returns.
November 13, 2026 · Accounting and Finance MCQs, Financial Management & Analysis MCQs
Standard deviation of returns is a measure of:
Related MCQs
According to Modigliani and Miller (no taxes), the value of a firm:
A.
Increases as debt increases
B.
Decreases as debt increases
C.
Depends on the dividend policy only
D.
Is independent of its capital structure
Correct answer is:
D. Is independent of its capital structure
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PIFRA stands for:
A.
Project to Improve Financial Reporting and Auditing
B.
Public Institution for Revenue Administration
C.
Planning Institute for Fiscal Reform and Accounting
D.
Project for Increasing Finance and Revenue Assessment
Correct answer is:
A. Project to Improve Financial Reporting and Auditing
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If the marginal propensity to consume (MPC) is 0.8, the simple expenditure multiplier is:
A.
5
B.
1.25
C.
0.8
D.
0.2
Correct answer is:
A. 5
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Net profit is Rs. 50,000 and sales are Rs. 400,000. The net profit margin is:
A.
8%
B.
20%
C.
12.5%
D.
125%
Correct answer is:
C. 12.5%
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Activity-based costing (ABC) assigns overhead costs to products on the basis of:
A.
A single plant-wide rate based on labor hours only
B.
Activities that consume resources, using cost drivers
C.
Selling price
D.
Number of employees
Correct answer is:
B. Activities that consume resources, using cost drivers
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Under the weighted average cost method, the cost per unit is calculated as:
A.
The cost of the latest purchase
B.
The cost of the oldest purchase
C.
Total cost of goods available divided by total units available
D.
The selling price less profit
Correct answer is:
C. Total cost of goods available divided by total units available
Do you agree with this answer?
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