Which of the Following Is Not a Factor That Affects

question 57

Multiple Choice

Which of the following is not a factor that affects the bid/ask spread?

• A) order costs
• B) inventory costs
• C) volume
• D) All of these factors affect the bid/ask spread.

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Definitions:

Inventory Value

The total cost or market value of all the goods and products held by a company intended for sale.

Cost

The amount of money or resources expended in order to acquire an asset or carry out a specific activity.

Market

A public place or an institution where goods, securities, commodities, or services are traded.

LIFO Method

An inventory valuation method called "Last In, First Out" where the most recently produced items are recorded as sold first.