The Risk of a Share Is Often Measured by Its

question 57

Multiple Choice

The risk of a share is often measured by its:

• A) P/E ratio.
• B) mean.
• C) standard deviation.
• D) dividend ratio.

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Definitions:

Predetermined Overhead Rate

A rate calculated at the beginning of the period, used to allocate overhead costs to products based on a specific activity base.

Machine Hours

Machine hours represent the total amount of time that machines are operating in a manufacturing or production process.

Direct Labour Hours

The total hours worked by employees directly involved in the production process, used to allocate labor costs to products or services.

Predetermined Overhead Rates

Rates used in costing that are established in advance to allocate overhead costs based on estimated expenditures.