Your Accountant Tells You That If You Can Continue to Earn

question 86

Multiple Choice

Your accountant tells you that if you can continue to earn the current interest rate on your balance of $500 for ten years,you will have about $983.58.If your accountant is correct,what is the current rate of interest?

• A)5 percent
• B)6 percent
• C)7 percent
• D)8 percent

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead incurred due to variance in production volume.

Standard Fixed Overhead Cost

The predetermined amount of fixed costs that are expected to be incurred to support operations, typically fixed for a specific period.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Price Variance

The difference between the expected price and the actual price paid for an item.