The Rule of 72 Is a Simple Mathematical Approximation for

question 121

Multiple Choice

The Rule of 72 is a simple mathematical approximation for

• A) the present value required to double an investment.
• B) the future value required to double an investment.
• C) the payments required to double an investment.
• D) the number of years required to double an investment.

---

Definitions:

Costs Of Goods Sold

Direct costs attributable to the production of goods sold by a company, including materials and labor, but excluding indirect expenses such as sales and distribution costs.

Standard Costs

Benchmark costs established for the purpose of assessing financial performance and identifying variances in production or operations.

Controlling Costs

The process of monitoring and managing expenses to ensure they do not exceed budgeted amounts.

Costing Products

The process of determining the total cost involved in manufacturing or producing a product, including materials, labor, and overhead expenses.