The Equivalent Units of Production for Labour and Overhead for the Month

question 38

Multiple Choice

The equivalent units of production for labour and overhead for the month are?

• A) 70,000 units.
• B) 80,000 units.
• C) 82,500 units.
• D) 90,000 units.

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Definitions:

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Net Cash Inflows

The total cash receipts minus cash payments over a period of time from operational, financial, and investing activities.

Profitability Index

A financial metric that measures the return on a project or investment relative to its cost, calculated by dividing the present value of future cash flows by the initial investment cost.

Internal Rate

Typically refers to the internal rate of return (IRR), which is a financial metric used to estimate the profitability of potential investments.