What Uses Valuation Techniques to Convert Future Amounts to a Single

question 144

Multiple Choice

What uses valuation techniques to convert future amounts to a single present amount?

• A) Risk approach
• B) Market approach
• C) Income approach
• D) Cost approach

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Definitions:

Full Payment

The complete settlement of an obligation, such as the total amount owed for goods or services.

Positive Cost Variance

Occurs when the actual cost of a project is less than the budgeted amount, indicating under-spending or efficiency.

Under Budget

A situation in which the actual spending is less than what was originally planned or allocated for a project or activity.

Management Reserves

Funds set aside by management for unforeseen changes in the scope or cost of a project.