The Sum of the Current Yield and the Rate of Capital

question 6

Multiple Choice

The sum of the current yield and the rate of capital gain is called the

• A)rate of return.
• B)discount yield.
• C)perpetuity yield.
• D)par value.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product cost.

Unit Product Cost

The total cost (both fixed and variable) associated with producing a unit of product, including direct materials, direct labor, and manufacturing overhead.

Absorption Costing

A pricing strategy that incorporates all expenses associated with production - including raw materials, workforce wages, and both fluctuating and constant factory overheads - into a product's cost.

Period Cost

Expenses directly tied to time that are not directly tied to the production process, such as administrative expenses.