Which of the Following Is NOT a Characteristic of the Dow

question 62

Multiple Choice

Which of the following is NOT a characteristic of the Dow Jones Industrial Average?

• A)It includes only very high quality common stock
• B)It generally follows the trend of the market
• C)The companies included comprise over 25% of the market value of companies listed on the New York Stock Exchange
• D)It is a value-weighted average
• E)Dividends require adjustments to the divisor

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, including but not limited to utility costs, depreciation, and salaries of maintenance personnel.

Variable

An element, feature, or factor that is liable to vary or change.

Segmented Income Statement

A financial statement that breaks down revenue, expenses, and profits by specific segments, departments, or products within a company.

Contribution Format

A method of income statement presentation where all variable costs are subtracted from sales to find the contribution margin, followed by the deduction of fixed costs to determine net operating income.