The Sum of the Discount Factors Applicable to Individual Cash

question 3

Multiple Choice

The sum of the discount factors applicable to individual cash flows in a series of equal cash flows is called the:

• A) single-sum, present-value factor.
• B) total discount factor.
• C) annuity discount factor.
• D) compound discount factor.
• E) internal rate discount factor.

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Definitions:

Unused Capacity

The difference between a company's actual production and its maximum possible production without additional capital investment.

Job-Order Costing

An accounting method that tracks the costs associated with creating a specific product or delivering a specific service, making it possible to calculate the profit on individual jobs.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate overhead costs to products or services based on a selected activity base.

Automated Shaper

A machine tool that operates under programmed control to shape materials.