An Accounting Course Is Taught in Two Classes Per Week

question 74

Multiple Choice

An accounting course is taught in two classes per week for one hour and fifty minutes each. The classes are held in a building with 36 classrooms that are used for a variety of courses. There are 15 other courses taught in the Accounting Department at this university. If the cost object is the accounting course, which of the following is a direct cost?

• A)The course Instructor's salary for teaching the course (he only teaches this one course).
• B)The salary of the building's custodian.
• C)The property taxes on the land and classroom building.
• D)The Accounting Department's secretary salary.

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Definitions:

Black-Scholes

A mathematical model used for pricing European style options, taking into account the stock price, strike price, time to expiration, risk-free rate, and volatility.

Delta

In finance, it's a ratio that compares the change in the price of an asset, usually a marketable security, to the corresponding change in the price of its derivative.

Underlying Asset

The financial asset upon which a derivative's price, such as an option or future, is based.

Net Requirements

The total demand for a product or component minus the inventory already on hand or on order, used in manufacturing and inventory management.