The Hurdle Rate Used to Evaluate an Investment Is Also

question 4

True/False

The hurdle rate used to evaluate an investment is also called the discount rate.

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Definitions:

Revenue and Spending Variance

The difference between the expected (budgeted) and actual amounts of revenue and expenses.

Flexible Budget Performance Report

A financial report that compares actual operating results to budgeted amounts adjusted for actual activity levels.

Activity Variance

The difference between the planned budget of an activity and the actual expenses incurred.

Net Operating Income

The earnings derived from the primary activities of a business before the subtraction of any taxes and interest charges.