A Distinction Between Stocks and Bonds Is That

question 2

Multiple Choice

A distinction between stocks and bonds is that

• A) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time.
• B) stocks represent ownership claims to the company and bonds do not.
• C) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange.
• D) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.
• E) bonds can be traded many times in the bond market, while stocks are non-transferable.

---

Definitions:

Process Costing

An accounting methodology used for homogeneous products, which calculates the cost of a product at various stages of production by spreading the total costs over the total units produced.

Work In Process

Refers to materials that have been partially completed in production but are not yet finished goods in manufacturing.

Cost Of Production Report

A document that details the total cost and production information for a particular period or batch in a manufacturing process.

Production Costs

The total expenses associated with manufacturing a product, including raw material, labor, and overhead costs.