The Fixed Overhead Variance That Indicates Whether Plant Facilities Were

question 5

Multiple Choice

The fixed overhead variance that indicates whether plant facilities were efficiently used is the

• A)budget variance.
• B)efficiency variance.
• C)spending variance.
• D)volume variance.

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Definitions:

Present Value

The present value of an anticipated amount of money or series of payments, considering a certain rate of return.

Net Present Value

Net Present Value (NPV) is a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.

Interest Rate

The fraction of a loan subject to interest charges to the borrower, usually shown as an annual percentage of the remaining loan balance.

Investment

The process of allocating resources, usually money, with the expectation of generating an income or profit.