Which of the Following Is NOT One of the Main

question 38

Multiple Choice

Which of the following is NOT one of the main functions performed by mutual funds?

• A)pooling sums of money to make investments
• B)paying out premiums to their clients
• C)providing professional management expertise
• D)acting as a "pass-through" for individuals to invest in the equity and debt markets

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Definitions:

Direct Labor-Hours

The total time worked directly on the manufacturing of products.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated to the production based on a predetermined rate.

Variable Overhead Efficiency Variance

Variable Overhead Efficiency Variance is the difference between the standard cost of variable overheads for the actual production and the actual variable overheads incurred, often attributed to efficiency in utilizing variable resources.

Variable Overhead

Indirect production costs that change in response to the level of production activity, such as utility costs in a manufacturing plant that vary with machine usage.