The Present Value of $4,000 to Be Received Each Year

question 72

Multiple Choice

The present value of $4,000 to be received each year for three years and earning a 10 percent return (rounded) is

• A)$11,120.
• B)$9,948.
• C)$9,822.
• D)$9,200.

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Definitions:

Labor-Hours

A measure of the work performed by employees, typically represented by the number of hours worked.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that vary with the level of production output.

Fixed Manufacturing Overhead

Consistent costs incurred during the manufacturing process that do not change with the amount of production, like factory rent and salaries of permanent staff.

Job-Order Costing System

An accounting system that accumulates costs by specific jobs or orders, suitable for manufacturing or service processes that are distinctively identifiable.