Donnell Wants to Invest Some Money That He Just Inherited

question 96

Multiple Choice

Donnell wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed .3% rate of return. However, he would like to earn a higher return. Donnell should keep in mind that to earn a higher return on his money he

• A) will have to invest overseas.
• B) should invest in a business that has a very stable and predictable rate of return.
• C) will probably have to accept a higher level of risk.
• D) will probably have to engage in illegal activities.

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Definitions:

Work In Process

The value of unfinished goods in the manufacturing process at a specific point in time.

Yield

A measure of materials usage efficiency.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed output units.

Manufacturing Cells

A layout design in manufacturing where machines and workers are grouped together to produce a specific product or component.