Use the Rule of 72 to Calculate How Long It

question 13

Multiple Choice

Use the Rule of 72 to calculate how long it will take Amelia to double a $10,000 investment if she expects to earn 8% interest.

• A) 8 years.
• B) 9 years.
• C) 10 years.
• D) 72 years.

---

Definitions:

Resource Consumption

The amount of resources used during a process, such as raw materials, energy, or labor.

Activity Rate

The cost incurred per unit of activity, used in activity-based costing to allocate overhead costs to products.

Overhead Cost

Expenses related to the operation of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative salaries.

Activity Cost Pool

A grouping of all the costs related to a particular business activity, facilitating more accurate allocation of overhead costs to products or services.