Management Accounting - Study Mode

[#176] In an accounting measurement, income and investment is divided to calculate
Correct Answer

(D) return on investment

Explanation

Solution: In an accounting measurement, income and investment is divided to calculate return on investment. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments.

[#177] Costs that are not incorporated in accounting records, but are recognized in different situations are classified as
Correct Answer

(B) imputed costs

Explanation

Solution: Costs that are not incorporated in accounting records, but are recognized in different situations are classified as imputed costs. An imputed cost is a cost that is incurred by virtue of using an asset instead of investing it or undertaking an alternative course of action. An imputed cost is an invisible cost that is not incurred directly, as opposed to an explicit cost, which is incurred directly.

[#178] A desire of an individual to give good performance for self-satisfaction is known as
Correct Answer

(A) intrinsic motivation

Explanation

Solution: A desire of an individual to give good performance for self-satisfaction is known as intrinsic motivation. Intrinsic motivation refers to behavior that is driven by internal rewards. In other words, the motivation to engage in a behavior arises from within the individual because it is naturally satisfying to you.

[#179] Return on investment is also known as
Correct Answer

(D) both a and b

Explanation

Solution: Return on investment is also known as accrual accounting rate of return and accounting rate of return.

[#180] After-tax average cost of funds used by company in long run is equal to
Correct Answer

(A) weighted average cost of capital

Explanation

Solution: After-tax average cost of funds used by company in long run is equal to weighted average cost of capital.