Which Is the Correct Order of Events When an Individual

question 59

Multiple Choice

Which is the correct order of events when an individual buys a stock through a brokerage firm?
I. The order is transmitted to the main office of the brokerage firm.
II. The customer places the order with their local stockbroker.
III. The confirmation of the order is sent to the broker placing the order.
IV. The order is sent to the floor of the exchange.

• A) I, II, III, IV
• B) II, I, III, IV
• C) II, IV, I, III
• D) II, I, IV, III

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Definitions:

Contribution Margin Ratio

The contribution margin ratio is a financial metric indicating the proportion of sales revenue that exceeds variable costs and is available to cover fixed costs and generate profit.

Fixed Costs

Outlays for rent, salaries, and insurance that are unaffected by variations in the volume of production or sales.

Sales Dollars

A term referring to the total revenue generated from the sale of goods or services, expressed in monetary value.

High-Low Method

A method employed in cost accounting that calculates estimated variable and fixed costs using the highest and lowest activity levels.