An Explicit Trading Cost Is

question 5

Multiple Choice

An explicit trading cost is

• A)commission
• B)Execution cost
• C)Bid-ask spread
• D)Annual fee

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Definitions:

Standard Amount

A benchmark or norm set for the quantity or cost of inputs in producing a specific product or in carrying out a process.

Actual Output

The real, quantifiable production achieved within a given time period, often compared against planned or potential output.

Labor Efficiency Variance

The difference between the actual labor hours worked and the expected labor hours, multiplied by the standard labor rate, indicating efficiency in labor use.

Labor Rate Variance

A metric that calculates the difference between the actual and expected cost of labor.