Which of the Following Statements Is Not True with Regard

question 9

Multiple Choice

Which of the following statements is not true with regard to stock exchange?

• A)It provides a platform for buying and selling of new securities.
• B)It curbs the marketability of the securities.
• C)By providing a ready market, it extends liquidity to the securities.
• D)It provides a platform for buying and selling of old securities.`

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Definitions:

Period Cost

Expenses that are not directly tied to the production process and are incurred regardless of the volume of production, such as selling, general, and administrative expenses.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to maintenance, utilities, and equipment depreciation.

Raw Materials Inventory

This represents the stock of basic materials awaiting to be processed into finished goods.

Work in Process

Inventory that includes all the materials, labor, and overhead costs for products that are in the production process but not yet completed.