Which One of the Following Statements About Costs of Aggregate

question 1

Multiple Choice

Which one of the following statements about costs of aggregate plans is best?

• A) Hiring costs include the costs of advertising jobs, interviews, training programs for new employees, and initial paperwork.
• B) Overtime wages are typically 50 percent of regular time, exclusive of fringe benefits.
• C) Fringe benefits, which are a part of regular- time costs, do not typically include health insurance and paid vacations.
• D) The cost of capital is not generally included in the inventory holding cost.

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Definitions:

Cyclical Stock

Stocks whose prices are affected by macroeconomic changes in the economy.

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.

Portfolio Weight

The percentage composition of a particular holding or investment relative to the total value of the portfolio.

Expected Return

The forecasted amount of profit or loss an investment is projected to generate, expressed as a percentage of the total invested capital.