The Analysis Technique That Finds the Amount of Time Required

question 36

Multiple Choice

The analysis technique that finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment is referred to as:

• A) return on investment (ROI).
• B) break-even analysis (BEA).
• C) net present value (NP
• D) future value (FV).
• E) Currency Rate Analysis (CRA).

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Definitions:

Raw Material

Basic substances in their natural, modified, or semi-processed states used as inputs for production processes to manufacture finished goods.

Materials Price Variance

The deviation between the actual and standard cost of materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at the standard cost.

Cost Drivers

Factors that cause a change in the cost of an activity; they are the structural determinants of the cost of an operation, influencing the expenses of certain business activities.