The _____ Is Often Used as a Benchmark in Assessing the Price

question 90

Multiple Choice

The _____ is often used as a benchmark in assessing the price behavior of high-tech stocks.

• A) Standard & Poor's (S&P) composite index
• B) Dow Jones Industrial Average (DJIA)
• C) New York Stock Exchange (NYSE) index
• D) Dow Jones Wilshire 5000 index
• E) National Association of Securities Dealers Automated Quotation System (Nasdaq) Composite index

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Definitions:

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected, multiplied by the standard cost per unit.

Materials Price Variance

The difference between the actual cost of materials purchased and the standard cost, multiplied by the quantity of materials purchased.

Raw Materials Price Variance

The difference between the actual cost of raw materials and the expected (or standard) cost.

Raw Materials Quantity Variance

It measures the difference between the expected amount of raw materials needed for production and the actual amount used.