Bollinger Bands

question 45

Multiple Choice

Bollinger bands:

• A)graphically reflect the differences between two moving averages.
• B)graphically depict the relative strength of a security as compared to the market.
• C)are a graphical representation of an exponential moving average.
• D)depict a 2-standard-deviation bound around a moving average.
• E)are equal to the 20-day moving average plus or minus one standard deviation.

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Definitions:

FIFO Method

A method of inventory valuation where the oldest items are sold first, standing for "First In, First Out."

Conversion Costs

The combined costs of direct labor and manufacturing overhead used to convert raw materials into finished products.

FIFO Method

A method of inventory valuation that assumes the first items placed in inventory are the first sold, hence, the cost of the oldest inventory is used to determine the cost of goods sold.

Process Costing

A costing method used where similar products are produced continuously, allocating production costs based on the process or department.