Which of the Following Statements Is True

question 329

Multiple Choice

Which of the following statements is true?

• A) Passively managed funds do not pay dividends.
• B) Passively managed funds have only one asset in their portfolio.
• C) Actively managed funds constantly buy or sell assets to generate better returns.
• D) Actively managed funds adjust assets to match the performance of a particular index.

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Definitions:

Variable Overhead

Costs that fluctuate with production volume, such as utilities or indirect materials, which are not directly tied to any single product.

Direct Materials

Basic substances that can be directly linked to the manufacture of particular products or services.

Direct Labor-Hours

A measure of the amount of time workers spend on a particular job or production process, used to assign labor costs to units of output.

Variable Overhead

Generic term for the costs of production that fluctuate with the level of output, including expenses like utilities or raw materials.