Venture Investors Generally Use Which One of the Following Target

question 62

Multiple Choice

Venture investors generally use which one of the following target rates to discount the projected cash flows of ventures in the "startup" stage of their life cycles:

• A) 20%
• B) 25%
• C) 40%
• D) 50%

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Definitions:

Direct Materials Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valuated at the standard cost.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected or standard labor costs for the production volume achieved.

Direct Labor

Labor costs directly associated with the production of goods or services, involving work that can be directly traced back to specific products.

Direct Materials Price Variance

A measurement of the difference between the actual cost of direct materials and the standard cost expected to be paid, expressed in monetary terms.