In General, Which of the Securities Below Has the Highest

question 124

Multiple Choice

In general, which of the securities below has the highest expected return on investment?

• A)U.S government bonds
• B)Corporate bonds
• C)Preferred stock
• D)Common stock

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Definitions:

Machine-Hours

A measure of production time, quantifying the hours a machine is operated in the manufacturing of a good.

Activity Rate

The activity rate is a cost accounting term that refers to the rate at which indirect costs are allocated to products or services based on specific activities.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources used in the production or delivery process.

Activity Rate

In cost accounting, it's the cost driver rate used in activity-based costing to assign indirect costs to products or services based on each activity's frequency and intensity.