The Weighted Average of Different Interest Rates Paid on Long-Term

question 49

Multiple Choice

The weighted average of different interest rates paid on long-term borrowings is called the _____.

• A) net present value
• B) cost of debt
• C) cost of equity
• D) cost of capital
• E) exchange risk beta

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual production volume.

Materials Quantity Variance

A financial measure that captures the difference between the actual amount of materials used in production and the standard amount expected, multiplied by the standard cost of those materials.

Variable Overhead Rate Variance

The difference between the actual overhead rate incurred and the standard overhead rate that was expected, multiplied by the actual hours worked.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating manufacturing overhead.