A component is being made with the help of a machine. 10,000 units are made at a cost of Rs 10 per unit (of which Rs 9 are variable). The same component can be bought from the market at Rs 9.50 per unit. However, the owner intends to rent the machine for Rs 6,000 following which he will buy components from market. If he does so, what will be the impact?
A. Savings of Rs 1,000
B. Loss of Rs 1,000
C. No Change
D. None of the above
The second term for Horizontal Analysis is
A. Dynamic Analysis
B. Inter-firm Analysis
C. Time-series Analysis
D. All of the above
Vertical analysis is also known as
A. Static analysis
B. Structural analysis
C. Cross-sectional analysis
D. All of the above
Time value of money indicates that
A. A unit of money obtained today is worth more than a unit of money obtained in future
B. A unit of money obtained today is worth less than a unit of money obtained in future
C. There is no difference in the value of money obtained today and tomorrow
D. None of the above
Time value of money supports the comparison of cash flows recorded at different time period by
A. Discounting all cash flows to a common point of time
B. Compounding all cash flows to a common point of time
C. Using either a or b
D. None of the above