What Is the Present Value of $888 in a One

question 19

Multiple Choice

What is the present value of $888 in a one year if the current rate of interest is five percent?

• A)$4,440
• B)$845.71
• C)$177.60
• D)none of these

Understand the significance of choosing an appropriate cost allocation base in activity-based costing.

Understand and apply the concept of departmental overhead rates.

Comprehend and calculate activity-based costing.

Calculate the company's plantwide overhead rate.

---

Definitions:

Statistical Software

Computer programs designed to perform statistical analysis, aiding in data analysis, visualization, and hypothesis testing.

Sales

The activities involved in selling goods or services to customers, including the negotiation of price and delivery terms.

Profits

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in maintaining the activity.

Forbes 500

An annual listing published by Forbes magazine ranking the top 500 publicly traded companies in the United States based on their revenue.