Which One of the Following Is FALSE

question 152

Multiple Choice

Which one of the following is FALSE?

• A) Most mutual funds invest in stocks, bonds, and other securities.
• B) Diversification provided by a mutual fund reduces risk.
• C) The goals of one mutual fund investor may differ from those of another.
• D) Since mutual funds are professionally managed, there is no need to evaluate a mutual fund.
• E) Mutual fund investments have a wide range of investments.

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Definitions:

Total Cost Variance

The difference between the actual cost incurred and the standard cost, reflecting how well costs are controlled during a production process.

Factory Overhead Cost

All of the costs of producing a product except for direct materials and direct labor.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the asset's consumption or wear and tear.

Indirect Factory Wages

Wages paid to workers who are not directly involved in production, such as supervisors and maintenance staff, considered part of manufacturing overhead.