Automatic Dividend Reinvestment

question 98

Multiple Choice

Automatic dividend reinvestment

• A)is a requirement of all mutual fund companies.
• B)compounds share ownership.
• C)allows one to defer taxes on this income.
• D)reduces investment yields.

---

Definitions:

Indirect Labor

The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process.

Spending Variance

This refers to the difference between the budgeted amount of spending and the actual amount spent.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.