The Following Question Are Based on the Following Rates of Return

question 34

Multiple Choice

The following question are based on the following rates of return for five independent investment projects:

-If the rate of interest is 12 percent,the number of projects that would be undertaken is

• A) 1.
• B) 2.
• C) 3.
• D) 4.
• E) 5.

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Definitions:

Immaterial Variances

Small or insignificant differences between budgeted and actual figures that are not considered important enough to analyze in detail.

Fixed Overhead Variance

The difference between actual fixed overhead costs and the expected (or budgeted) fixed overhead costs.

Volume Variance

A financial term that represents the difference between the expected (budgeted) volume of production or sales and the actual volume achieved.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.