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:

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. It indicates the efficiency with which a company uses its materials and labor to produce and sell products profitably.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold (COGS) associated with producing those goods.

Variable Costing

A method of accounting that encompasses only the variable costs of production, such as direct materials, direct labor, and variable overhead, in the computation of product costs.