The NPV for Epiphany's Project Is Closest To

question 60

Multiple Choice

The NPV for Epiphany's Project is closest to:

• A)$4825
• B)$39,000
• C)$11,946
• D)$20,400

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Definitions:

Direct Materials Purchases Variance

The difference between the actual costs of direct materials purchased and the expected (or standard) costs, impacting the budget and potentially financial results.

Variable Overhead Efficiency Variance

A measure used in management accounting to assess the efficiency of variable production overhead based on the actual time taken to produce goods versus the expected time.

Standard Direct Labor-Hours

Standard direct labor-hours refer to the estimated hours of direct labor work required to produce one unit of a product or service, used for budgeting and variance analysis.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost assigned to those overheads, indicating efficiency in managing variable costs.