Treasury Notes

question 91

Multiple Choice

Treasury notes:

• A) make a set-rate interest payment every six months.
• B) are protected against inflation.
• C) promise a set amount of money to be paid on a fixed date.
• D) mature in 30 years.

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Definitions:

Average Costs

Calculated by dividing total costs by the total number of units produced, indicating the cost on a per-unit basis.

Produced Units

The number of units of a product that have been completed by a manufacturing process during a specific period.

Relevant Range

The level of activity or volume over which the specific cost assumptions (fixed and variable costs) are valid.

Total Variable Cost

The sum of all costs that vary directly with the level of production or output.