The Present Value of a Future Payment Decreases If The

question 36

Multiple Choice

The present value of a future payment decreases if the:

• A)period between the present and the future increases.
• B)future payment increases.
• C)interest rate decreases.
• D)stock market rises.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders, calculated before the accounting period begins.

Direct Labor-Hour

The total amount of time spent by workers directly involved in the production of goods or services, often used in cost accounting.

Manufacturing Overhead Budget

An estimation of all manufacturing costs excluding direct materials and direct labor, planned over a specific period.

Cash Disbursements

The outflow of cash for expenses, purchases, or investments by a business, recorded in the cash disbursements journal.