A Decade Ago, Many Observers Speculated That Load Funds Would

question 36

Multiple Choice

A decade ago, many observers speculated that load funds would become obsolete. But, the actual trend has been quite different. Which of the below is offered as a reason for load funds maintaining a costly fee?

• A) Many investors have remained dependent on the investment counsel and service
• B) Investors do not pay attention to fees and so do not care
• C) Many investors have remained dependent on the initiative of the sales agent
• D) Sales-force distributed funds have shown considerable ingenuity and flexibility in imposing sales charges

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Definitions:

Direct Labor-Hours

The cumulative number of labor hours directly engaged in manufacturing goods or services.

Materials Price Variance

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

Variable Manufacturing

Costs in manufacturing that change in proportion to the volume of production, such as materials and labor.

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted cost of materials, based on standard prices and actual quantities purchased.