The Federal Securities Act and the Securities Exchange Commission Aimed

question 88

Multiple Choice

The Federal Securities Act and the Securities Exchange Commission aimed to

• A) halt the sale of stocks on margin (i.e. with borrowed funds).
• B) force stockbrokers to register with the federal government.
• C) prevent interlocking directorates and business pyramiding schemes.
• D) provide full disclosure of information and prevent insider trading and other fraudulent practices.
• E) enable the Chicago Board of Trade to compete with the New York Stock Exchange.

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Definitions:

Standard Price

The predetermined cost of acquiring goods and services, often used in budgeting and cost control.

Direct Materials

Raw materials that can be directly traced to the production of a specific product, a component of the total manufacturing cost.

Variances

Differences between planned or expected financial outcomes and the actual results.

Standard Direct Materials

The budgeted cost for direct materials which are the raw materials that can be directly attributed to the production of goods, used for budgeting and performance evaluation.