When Using a Financial Calculator, Which of the Following Is

question 73

Multiple Choice

When using a financial calculator, which of the following is the correct way to find the future value of $200 deposited today in an account for four years paying annual interest of 3%?

• A) N=4, i=.03, PV=-200, PMT=0, solve for FV
• B) N=4, i=3, PV=-200, PMT=0, solve for FV
• C) N=4, i=3, PV=0, PMT=$200, solve for FV
• D) N=4, i=3, FV=200, PMT=0, solve for PV

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Definitions:

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and uses fixed manufacturing overhead as a period cost.

Absorption Costing

A financial calculation approach that encompasses both direct and indirect expenses related to producing a product.

Variable Costing

An accounting method that only includes variable production costs (costs that change with the level of output) in the cost of goods sold and treats fixed costs as period costs.

Manufacturing Costs

The total costs incurred in the process of producing or manufacturing goods.