The Future Value of a Sum of Money Deposited in a Bank

question 147

Multiple Choice

The future value of a sum of money deposited in a bank will be higher if ________.

• A) the rate of interest is low
• B) the rate of inflation is low
• C) the returns on other assets are low
• D) the money is kept in the bank for a longer period of time

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Definitions:

Standard Price

The predetermined cost of a single unit of product or service, used in budgeting and to measure efficiency.

Direct Labor Rate Variance

The difference between the expected cost of direct labor and the actual cost incurred, based on the rate paid per hour.

Direct Labor Time Variance

The difference between the actual time spent on production and the estimated standard time, multiplied by the standard labor rate.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.