Which of the Following Statements Is Not True

question 87

Multiple Choice

Which of the following statements is not true?

• A) A value-weighted index is a better index to use to reflect changes in the economy's overall wealth.
• B) A price-weighted index is a better index to use to reflect the average change in the price of a typical share of stock.
• C) The Dow Jones Industrial Average is a price-weighted index.
• D) The S&P 500 is a price-weighted index.

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Definitions:

Direct Labor-Hours

The number of labor hours spent directly on the production of goods or services.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services and are a significant portion of production costs.

Variable Overhead

Costs that fluctuate with the level of production output, including expenses like utilities and raw materials.

Direct Materials

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