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C1 Questions and Answers

Question # 1

What happens to the marginal cost if revenue accelerates slower than variable costs but fixed costs remain the same?

A.

It remains the same.

B.

It decreases because variable costs are increasing.

C.

It increases at the same rate as variable costs.

D.

It becomes increasingly higher as revenues increase.

Question # 2

What is the top line or starting point of an organization’s income?

A.

Gross profit

B.

Revenue

C.

Net income

D.

Operating profit

Question # 3

Which of the following acts is focused on employers with service contracts with the government?

A.

Davis-Bacon Act

B.

Sherman Antitrust Act

C.

McNamara-O'Hara Act

D.

National Labor Relations Act

Question # 4

Which one of the following should be included in a compensation guide for managers?

A.

Information on common management processes

B.

The consequences of various disciplinary measures

C.

Individual salary rates of employees in their department

Question # 5

On what basis does the Equal Pay Act of 1963 prohibit an employer from discriminating in employee compensation programs?

A.

Race

B.

Religion

C.

Sex

D.

Age