Which Is the Correct PMT Function Given That Cell F1

question 18

Multiple Choice

Which is the correct PMT function given that cell F1 contains the interest rate, cell F2 contains the # of periods, cell A8 contains the present value, and monthly payments are to be made?

• A)=PMT(F1/12,F2,A8)
• B)=PMT((F1/12),F2,A8)
• C)=PMT(F1,F2,A8)
• D)=PAYMENT(F1/12,F2,A8)

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Definitions:

Activity Cost Pool

Refers to a grouping of all costs related to a specific activity used in activity-based costing to allocate overhead costs more accurately to products or services.

Activity-Based Costing

A method of costing that assigns costs to products or services based on the activities they require.

Activity Rate

The measure used to allocate costs to activities based on their use of resources.

Activity Cost Pool

A grouping of all the costs related to a particular activity, used in activity-based costing to more accurately allocate costs to products or services.