An Increase in ________ Will Decrease Present Value

question 74

Multiple Choice

An increase in ________ will decrease present value.

• A) the discount rate per period
• B) the original amount invested
• C) the number of periods
• D) both A and C

---

Definitions:

Two-Way Analysis

A method used in statistics or research to examine the effect of two different variables on an outcome simultaneously.

Overhead Variances

Overhead Variances are differences between the actual overhead incurred and the standard or expected overhead, used to assess the efficiency of overhead cost control.

Fixed Budget Variance

The difference between the actual incurred expenses and the expenses budgeted for a set period, under the assumption of fixed operational conditions.

Standard Costing System

An accounting system that assigns fixed costs for materials, labor, and overhead to the production of goods, facilitating budgeting and performance evaluation.