Which of the Following Cost Categories Would Most Likely Use

question 97

Multiple Choice

Which of the following cost categories would most likely use the number of employees or new hires as its activity driver?

• A)maintenance
• B)purchasing
• C)personnel
• D)accounting

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Definitions:

Underwriting Spread

The underwriting spread refers to the difference between the price an underwriter pays to the issuer of a security and the price at which it sells the security to investors.

Issue Costs

Expenses associated with the issuance of new securities, including underwriting, legal, and registration fees.

Stock Price

The current value at which a share of a company is bought or sold in the stock market.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock in a company, often at a discount, during a rights offering.