An Index Fund

question 67

Multiple Choice

An index fund

• A) is a passively managed mutual fund.
• B) has higher trading costs than an actively managed mutual fund.
• C) has higher trading costs than a passively managed mutual fund.
• D) is an actively managed mutual fund.

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Definitions:

Fixed Manufacturing Overhead

The consistent, non-variable costs associated with manufacturing, regardless of the production volume.

Direct Materials

Raw materials that are directly used in the production of goods and can be easily traced to the product.

Direct Labour

The workforce directly involved in manufacturing goods or providing services, where their labor can be directly tied to end products.

Variable Manufacturing Overhead

Costs in the production process that vary with the level of output, such as utilities for the machinery.