What Is the Present Value of a $1,000 Payment at the End

question 97

Multiple Choice

What is the present value of a $1,000 payment at the end of each of the next 10 years discounted back to the present at 5%?

• A)$5,098
• B)$7,722
• C)$8,775
• D)$9,112

Understand the concept of standard costing and variance analysis.

Calculate direct material price, quantity, and total variances.

Calculate direct labor rate, efficiency, and total variances.

Identify the management responsibilities associated with different variances.

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Definitions:

Abbreviation

A shortened form of a word or phrase used for convenience.

M

Often used as an abbreviation for "meter" in metric measurements or as a designation for thousands in units of measure.

Internal Threads

The threads located within a hole or bore, allowing for the screwing in of a mating part with external threads.

Tap

A tool used to cut internal threads into a hole, creating a surface that can accommodate a screw or bolt.