In March 2002 Cisco (CSCO) Stock Rose from $18 to $19

question 28

Multiple Choice

In March 2002 Cisco (CSCO) stock rose from $18 to $19, and America Online-Time Warner (AOL) dropped from $34 to $33. If you invested a total of $12,000 in these stocks at the beginning of March and sold them for $11,800 at the end of March, how many shares of each stock did you buy ?

• A)200 shares of Cisco and 200 shares of America Online-Time Warner
• B) 159 shares of Cisco and 300 shares of America Online-Time Warner
• C) 100 shares of Cisco and 300 shares of America Online-Time Warner
• D) 300 shares of Cisco and 100 shares of America Online-Time Warner
• E) 80 shares of Cisco and 310 shares of America Online-Time Warner

---

Definitions:

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.

Favorable

A term used to describe outcomes or variances that are positive or beneficial to a business, such as lower costs or higher revenues than expected.

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.