When Considering Insider Trading, the "Insiders" of a Reporting Issuer

question 34

Multiple Choice

When considering insider trading, the "insiders" of a reporting issuer are

• A) its directors and senior officers.
• B) the directors and senior officers of its parent or subsidiary firms.
• C) its shareholders with more than 10 percent of outstanding voting rights.
• D) the reporting issuer itself (the company is its own insider).
• E) All of these are reporting issuers.

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Definitions:

Predetermined Manufacturing Overhead

An estimated overhead cost calculated before the actual production starts, used in budgeting and setting product prices.

Markup

Markup is the amount added to the cost price of goods to cover overhead and profit, determining the selling price.

Overhead Applied

The portion of estimated overhead cost allocated to each unit of production or activity based on the predetermined overhead rate.

Manufacturing Overhead

Factory-associated indirect expenses that arise during the manufacturing of a product.