1. Which of the following methods assumes that 0 is the net present value:

a. Payback

b. Discounted payback

c. IRR

d. none of these

2. An income statement using the variable cost format shows the

a. Net income

b. contribution margen

c. Both A and B

d. none of the above

3. In the variable cost format, the income statement shows the fixed manufacturing overhead as:

a. fixed cost

b. a product cost

c. an inventoriable cost

d. none of the above

4. If production is less than sales, the net income with respect to absorption costing and variable costing:

a. is the same

b. variable costing yields higher net income

c. variable costing yields lower net income

d. none of the above