The Total Amount of Simple Interest Calculated Annually on a $6,000

question 183

Multiple Choice

The total amount of simple interest calculated annually on a $6,000 note payable for 3 years at 11% is

• A) $1,980
• B) $2,205
• C) $6,600
• D) $7,980

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Definitions:

Controllable Variance

The difference between actual and budgeted figures that is within the control of a manager, used for assessing performance.

Controllable Variance

The difference between actual costs and budgeted costs that management has the power to influence or control through decisions and actions.

Variable Factory Overhead

Costs in manufacturing that vary with the level of production output, such as utilities and materials used in the production process.

Controllable Variance

The difference between actual budgeted costs and the controllable costs within a budget period.