Which One of the Following Will Increase the Present Value

question 28

Multiple Choice

Which one of the following will increase the present value of an annuity?

• A)lowering the discount rate
• B)reducing the cash flow amount
• C)decreasing the number of payments
• D)reducing the future value of the cash flow
• E)lowering the payment amount

Calculate expected sales dollars and unit sales growth.

Ascertain cash flows and cash management in budgeting, including receipts from sales and cash budget preparation.

Comprehend and apply Just-In-Time (JIT) inventory management principles in budgeting.

Grasp the procedure for developing various components of the master budget, including sales, production, and purchase budgets.

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Definitions:

Rate Variance

It is the difference between the actual rate paid for an item or service and the expected (standard or budgeted) rate, often used in budgeting and cost management.

Predetermined Overhead Rate

A rate calculated before a period begins, used to assign overhead costs to products or job orders based on a certain activity, such as machine hours or labor hours.

Variable Component

The portion of cost or expense that varies directly with changes in output or activity level.

Fixed Manufacturing Overhead

Refers to the consistent, unvarying costs associated with manufacturing that do not fluctuate with production volume, like salaries of managerial staff and depreciation of factory equipment.