Use the Information Below to Answer the Following Question(s)

question 172

Multiple Choice

Use the information below to answer the following question(s) .Ontario Industries Inc.had the following activities during the year:

-What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

• A)$16,000
• B)$41,000
• C)$35,000
• D)$23,000
• E)$29,000

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Definitions:

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Time Value

The principle that money currently in hand is valued higher than an identical amount received in the future, owing to its capacity to generate earnings.

Accounting Rate of Return

A financial ratio that measures the expected profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.

Initial Investment

The amount of money used to start a project, purchase assets, or invest in securities, which is used as a basis for evaluating the potential profitability of the investment.