CHAPTER 11
Project Analysis and Evaluation
I. DEFINITIONS
FORECASTING RISK
a 1. The possibility that errors in projected cash flows can lead to incorrect estimates of net prent value is called _____ risk.
a. forecasting
b. projection
c. scenario我像风一样自由
d. Monte Carlo
e. accounting
SCENARIO ANALYSIS
b 2. An analysis of what happens to the estimate of the net prent value when you consider the best ca and the worst ca situations is called _____ analysis.
a. forecasting
b. scenario
c. nsitivity
d. simulation
e. break-even
SENSITIVITY ANALYSIS
c 3. An analysis of what happens to the estimate of net prent value when only one variable is changed is called _____ analysis.
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a. forecasting
b. scenario
c. nsitivity
d. simulation
e. break-even
SIMULATION ANALYSIS
d 4. An analysis which combines scenario analysis with nsitivity analysis is called _____ analysis.
a. forecasting
b. scenario
c. nsitivity
d. simulation
e. break-even
BREAK-EVEN ANALYSIS
e 5. An analysis of the relationship between the sales volume and various measures of profitability is called _____ analysis.
a. forecasting
b. scenario
c. nsitivity
d. simulation
e. break-even
VARIABLE COSTS
a 6. Variable costs:
a. change in direct relationship to the quantity of output produced.
b. are constant in the short-run regardless of the quantity of output produced.
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c. reflect the change in a variable when one more unit of output is produced.
d. are subtracted from fixed costs to compute the contribution margin.
e. form the basis that is ud to determine the degree of operating leverage employed by a firm.
FIXED COSTS
b 7. Fixed costs:
a. change as the quantity of output produced changes.
b. are constant over the short-run regardless of the quantity of output produced.
c. reflect the change in a variable when one more unit of output is produced.
d. are subtracted from sales to compute the contribution margin.
e. can be ignored in scenario analysis since they are constant over the life of a project.
MARGINAL COSTS
c 8. Marginal costs:
a. are ud solely for accounting and tax purpos.
b. are equal to the total costs divided by the number of units produced.
柏的组词 c. reflect changes created by producing one more unit of output.
d. are the total production expens of a firm for some stated period of time.
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e. are the variable costs incurred over the entire life of a project.
TOTAL COSTS
d 9. Total costs:
a. must equal total revenue for a project.
b. are constant no matter what quantity of output is produced.
c. plus the change in retained earnings must equal total revenue.
d. are the summation of all the expens of a firm for a stated period of time.
e. are equal to fixed costs plus the marginal cost.
AVERAGE COSTS
e 10. Average total cost:
a. increas in direct proportion to an increa in output.
b. is constant no matter what quantity of output is produced.
c. changes as a function of the next unit of output produced.
d. is the summation of all the expens of a firm for a stated period of time.
e. is equal to the average fixed cost plus the average variable cost.
MARGINAL REVENUE
a 11. The change in revenue that occurs when one more unit of output is sold is called the _____ revenue.
a. marginal
b. average
c. total
d. fixed
e. variable
CONTRIBUTION MARGIN
b 12. The difference between the unit sales price and the variable cost per unit is called:
a. operating leverage.
b. the contribution margin.
c. the gross profit.
d. the net profit.
e. the marginal revenue.
ACCOUNTING BREAK-EVEN
c 13. The sales level that results in a project’s net income exactly equaling zero is called the _____ break-even.
a. operational
b. leveraged
c. accounting
d. cash
e. financial
CASH BREAK-EVEN
d 14. The sales level that results in a project’s operating cash flow exactly equaling zero is called the _____ break-even.
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a. operational
b. leveraged
c. accounting
d. cash
e. financial
FINANCIAL BREAK-EVEN
e 15. The sales level that results in a project’s net prent value exactly equaling zero is called the _____ break-even.
a. operational
b. leveraged
c. accounting
d. cash
e. financial
OPERATING LEVERAGE
a 16. The degree to which a firm relies on fixed production costs is called its:
a. operating leverage.
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b. financial break-even.
c. contribution margin.
平静的湖水 d. cost nsitivity.
e. fixed break-even.
DEGREE OF OPERATING LEVERAGE
b 17. The percentage change in operating cash flow relative to the percentage chang
e in quantity sold is called the:
