Write the Word or Phrase That Best Completes Each Statement $B ( x )$

question 375

Multiple Choice

Write the word or phrase that best completes each statement or answers the question.
-An economist predicts that the buying power $B ( x )$ of a dollar x years from now will decrease according to the formula $B ( x ) = 0.2 ^ { x }$ . How much will today's dollar be worth in 4 years? Round the answer to the nearest cent.

• A) \(\$ 0.53\)
• B) \(\$ 0.80\)
• C) \(\$ 0.00\)
• D) \(\$ 1.32\)

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Definitions:

Quantity Variance

A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input.

Price Variance

The difference between the actual cost of a good or service and its budgeted or standard cost.

Standard Cost System

A cost accounting system that uses standard costs for products or services to compare against actual costs and analyze variances for management control.

Work In Process Inventory

Goods that are in the process of being manufactured but are not yet complete.