". VdoTips: Financial Management Practice Set

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Financial Management Practice Set

21. Fixed cost per unit _______
(A) changes according to volume of production
(B) be flexible according to the rate of interest
(C) does not change with volume of production
(D) not remains constant


22. Variable cost in an organization
(A) changes with the volume of production
(B) be fixed according to the rate of growth
(C) does not change with volume of production
(D) remains constant


23. Variable cost per unit
(A) varies with the level of output
(B) remains constant irrespective of the level of output
(C) changes with the growth of the firm
(D) does not change with volume of production


24. The operating leverage measures ____ risk
(A) Business risk
(B) Operating risk
(C) Financial risk
(D) None of the above


25. Financial leverage is also known as
(A) Trading on equity
(B) Trading on debt
(C) Interest on equity
(D) Interest on debt