The Face Amount of a Promissory Note Is Called The

question 57

Multiple Choice

The face amount of a promissory note is called the:

• A) discount of the note.
• B) time of the note.
• C) interest rate of the note.
• D) principal of the note.

---

Definitions:

Variable Component

A variable component refers to a part of a cost or expense that varies directly with the level of output or activity.

Fixed Component

A portion of total costs that remains constant, regardless of changes in the production level or sales volume.

Underapplied

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied

A situation where the estimated cost allocated to a product or job exceeds the actual costs incurred.