The Required Rate of Return Used in the Net Present

question 54

Multiple Choice

The required rate of return used in the net present value model can also be called the

• A) hurdle rate.
• B) minimum acceptable rate of return.
• C) cost of capital.
• D) discount rate.
• E) All of these.

Understand the concept and calculation of variable overhead rate and efficiency variances.

Understand the concept and calculation of materials quantity variance.

Understand the concept and calculation of raw materials price variance.

Understand how to classify variances as favorable or unfavorable.