Which of the Following Statements Is Correct

question 44

Multiple Choice

Which of the following statements is correct?

• A)The process of moving a value or cash flow forward in time is known as discounting.
• B)The effect of earning interest on interest is known as compound interest.
• C)It is possible to compare or combine values at different points in time.
• D)A dollar in the future is worth more than a dollar today.
• E)Calculating the value of a future cash flow at an earlier point in time is known as compounding.

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Definitions:

Total Labor Variance

The difference between the actual labor costs and the standard or budgeted labor costs for a production process.

U-bolts

Metal fasteners in the shape of the letter U, used to secure pipes or other round objects to surfaces.

Standard Costs

Costs that are predetermined on a per-unit basis. Standard costs are used as a benchmark for evaluating performance. These costs are often used in or are the output from the budgeting process.

Efficiency Losses

Reductions in economic well-being, reflected by the inability of a market to allocate resources optimally.