SCENARIO 3-11 Given Below Are the Closing Prices for the Dow

question 115

Multiple Choice

SCENARIO 3-11 Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over 10-weeks sometime in the past.
-Referring to Scenario 3-11, you will expect an increase in the DJIA to be associated with

• A)an increase in the S&P 500 index
• B)a decrease in the S&P 500 index
• C)no predictable change in the DJIA
• D)no predictable change

---

Definitions:

Raw Materials Cost

The expense associated with acquiring the unprocessed materials required in the manufacture of products.

Cash Collected

The total amount of money received from sales, services, or other business activities.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Direct Labor Cost

The total cost of wages paid to employees who are directly involved in the manufacturing or production of goods or services.