The Amount to Be Invested Today at a Given Interest

question 20

Multiple Choice

The amount to be invested today at a given interest rate over a specified period in order to equal a future amount is called the

• A)present value interest factor.
• B)future value.
• C)present value.
• D)future value interest factor.

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Definitions:

Variance

The difference between planned or expected outcomes and the actual outcomes in finance and accounting.

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs accurately.

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.