The Bid Price for Sun Microsystems (JAVA)is Currently $16

question 19

Multiple Choice

The bid price for Sun Microsystems (JAVA) is currently $16.22 and its ask price is $16.23. Your broker charges a commission of $13 per transaction. What are the total costs of buying and
Selling 1,000 shares of JAVA as a percentage of the invested dollars?

• A)0.22%
• B)0.43%
• C)0.02%
• D)0.18%

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Continuous Process

A production method used to manufacture, produce, or process materials without interruption.

Conversion Cost

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished goods.

Equivalent Unit

In cost accounting, it represents a measure that converts the work done on partial units of output into the amount of completed units that could have been produced with that amount of work.