What Term Is Used for the Minimum Acceptable Rate of Return

question 53

Multiple Choice

 What term is used for the minimum acceptable rate of return on an investment?

• A) capitalization rate
• B) internal rate of return
• C) discount rate
• D) required rate of return

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Definitions:

Factory Depreciation

The decrease in value of manufacturing facilities and equipment over time due to wear and tear or obsolescence.

Cost of Goods Manufactured

The total expense incurred by a company to produce goods during a specific period, including labor, material, and overhead costs.

Manufacturing Overhead

All manufacturing costs excluding direct materials and direct labor.

Raw Materials Inventory

The total cost of all the components needed to manufacture a product that a company has in stock.