A Partial Listing of Costs Incurred During December at Gagnier

question 40

Multiple Choice

A partial listing of costs incurred during December at Gagnier Corporation appears below:
-The total of the manufacturing overhead costs listed above for December is:

• A)$325,000
• B)$635,000
• C)$89,000
• D)$40,000

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Definitions:

Discount Rate

This is the discount rate used to figure out what future cash flows are worth in the present in discounted cash flow analysis.

Small Used Aircraft

A previously owned aircraft that is smaller in size, often used for personal, business, or small commercial purposes.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

Within discounted cash flow analysis, it's the interest rate applied to derive the present value of cash flows expected in the future.