If a Mutual Fund's NAV Is $50 and Its Expense

question 106

Multiple Choice

If a mutual fund's NAV is $50 and its expense ratio is 2%, what are the total expenses per share?

• A) $2
• B) $10
• C) $1
• D) $5

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Definitions:

Cost of Goods Sold

Direct expenditures involved in the making of a company's sold products, which includes labor and material costs.

Freight Out

The cost of transporting goods from a seller's premises to the buyer's location, typically recorded as a selling expense by the seller.

Transportation to Consignees

The costs incurred to transport goods to consignees, who will sell the goods on behalf of the shipping party.

Cost Recovery Method

An accounting technique used to defer the recognition of income until the cash received from a transaction exceeds the costs associated with it.