Which One of the Following Statements Regarding Orders Is False

question 1

Multiple Choice

Which one of the following statements regarding orders is false?

• A) A market order is simply an order to buy or sell a stock immediately at the prevailing market price.
• B) A limit-sell order is where investors specify prices at which they are willing to sell a security.
• C) If stock ABC is selling at $50, a limit-buy order may instruct the broker to buy the stock if and when the share price falls below $45.
• D) A market order is an order to buy or sell a stock on a specific exchange (market).

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Definitions:

Direct Labor-Hours

The accumulated hours spent by workers directly involved in manufacturing activities.

Forming

A manufacturing process used to shape metal or other materials using a combination of pressure and tooling.

Assembly

The process of putting together various components to create a finished product.

Predetermined Overhead Rates

The estimated overhead cost per unit of the allocation base, calculated at the beginning of the period.