An Index Fossil

question 43

Multiple Choice

An index fossil:

• A)is a marker for a specific time period
• B)is a fossil species that existed for a long period of time before becoming extinct
• C)is a fossil species that was restricted to a small geographic area
• D)b and c

---

Definitions:

Direct Fixed Costs

Costs that are directly linked to a specific department or cost center and do not vary with the level of production or sales.

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity by calculating the present value of expected future cash flows using a discount rate.

Cash Payback Period

The duration of time it takes for an investment to generate enough cash flow to recover its initial outlay.

Straight-Line Method

A technique for figuring out an asset's depreciation, apportioning a consistent depreciation value annually throughout the asset's lifespan.