Use the Information for the Question(s)below

question 53

Multiple Choice

Use the information for the question(s) below.

-If WiseGuy Inc.uses the payback period rule to choose projects,which of the projects will rank highest?

• A)Project A
• B)Project B
• C)Project C
• D)Project D
• E)Project E

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Definitions:

Spending Variance

The difference between the actual amount spent on a particular item and the amount that was budgeted for it.

Indirect Materials Cost

This refers to the cost of materials that are necessary for the production process but do not become an integral part of the finished product.

Variable Cost

Costs that fluctuate in direct proportion to changes in the level of activity or production volume, such as raw materials and packaging.

Machine-Hours

A measure of the actual time a machine is operated, used in allocating manufacturing overhead costs to units of production based on usage of machines.