Mutual Funds 12b-1 Fees Have the Same Effect as Front-End

question 6

True/False

Mutual funds 12b-1 fees have the same effect as front-end loads in that they reduce the return received by investors.

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Definitions:

Unfavorable Variance

A situation where actual costs exceed budgeted or expected costs.

Efficiency Variance

The difference between the actual input used in production and the standard input that was expected to be used.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a category or period, indicating over or underspending.

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected (or standard) quantity.