At an Annual Interest Rate of 7%,the Future Value of $5000

question 50

Multiple Choice

At an annual interest rate of 7%,the future value of $5000 in five years is closest to:

• A)$3565.
• B)$6750.
• C)$7015.
• D)$7035.

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Definitions:

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and a portion of all overhead costs.

Variable Costing

A system in accounting that considers solely the changing costs associated with production (direct materials, direct labor, and variable manufacturing overhead) in the calculation of product prices.

Net Operating Income

Net Operating Income, often abbreviated as NOI, is a financial metric that calculates a company’s profit after subtracting operating expenses excluding taxes and interest.

Absorption Costing

Absorption costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.