The Rule of 70 States That

question 8

Multiple Choice

The rule of 70 states that:

• A)if grows at a rate of g percent per year,then the number of years it takes to double is approximately equal to 70/g.
• B)if grows at a rate of g percent per year,then the number of years it takes to double is exactly equal to 70/g.
• C)if grows at a rate of g percent per year,then the number of years it takes to double is approximately equal to g/70.
• D)if grows at a rate of g percent per year,then the number of years it takes to triple is approximately equal to 70/g.
• E)if grows at a rate of g percent per year,then the number of years it takes to double is approximately equal to 70/(1 + g).

Recognize the need for updating standard costs in response to changes in production specifications, labor contracts, and material costs.

Understand the concept and calculation of direct labor variances, including rate and time variances.

Identify and calculate direct materials variances, including price and quantity variances.

Grasp the methods for calculating total factory overhead cost variances and understand their components.

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Definitions:

Fee Simple

The most extensive interest in real estate available, granting the owner full possession and control, subject only to governmental restrictions.

Easement

A non-possessory right to use or enter onto another's property for a specified purpose, without owning it.

Co-Ownership

Co-Ownership is the joint ownership of property or assets by two or more parties, where each party holds an interest or stake in the shared ownership.

Joint Tenants

A form of co-ownership where parties own property equally with the right of survivorship.