Your Son Is About to Start Kindergarten in a Private

question 62

Multiple Choice

Your son is about to start kindergarten in a private school.Currently,the tuition is $12,000 per year,payable at the end of the school year.You expect annual tuition increases to average 6% per year over the next 13 years.Assuming that your son remains in this private school through high school and that your current interest rate is 7%,then the present value of your son's private school education is closest to:

• A) $332,300
• B) $137,900
• C) $155,800
• D) $156,000

Understand the implications of activity-based costing for external financial reporting.

Recognize the limitations and challenges of implementing activity-based costing.

Understand the notion of activity-based management and its focus on eliminating waste.

Differentiate between traditional costing and activity-based costing systems.

---

Definitions:

Alanine

A nonessential amino acid used by the body to build proteins and involved in metabolism.

Aspartic Acid

An amino acid with the formula C4H7NO4, important in the biosynthesis of proteins.

Histidine

An essential amino acid important in many proteins, playing a key role in enzymes and the buffering of pH in blood.

Phenylalanine

An essential amino acid that is a precursor to neurotransmitters and must be obtained through diet.