The Rule of 72

question 63

Multiple Choice

The rule of 72

• A)Refers to the base year from which growth rates are measured.
• B)Shows the number of years it takes for productivity to triple.
• C)Is the procedure for calculating percentage increases in the growth rate.
• D)Can be used to determine how long it will take for GDP to double.

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Definitions:

Work in Process

A stage in the production process where goods are partially completed and will require further work before they are ready for sale.

Costs Transferred

The expenses that are moved from one department or project to another within the same company.

Underapplied Overhead

A situation in accounting where the allocated overhead for a period is less than the actual overhead incurred.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including salaries of non-direct labor, maintenance, and factory supplies.