Which of the Following Is True About the Differences Between

question 17

Multiple Choice

Which of the following is true about the differences between no-load mutual funds and load mutual funds?

• A) No-load funds invest in fewer types of investments than load funds.
• B) Load funds generally have fewer different stocks and bonds in their investment portfolio.
• C) Load funds charge a yearly management fee whereas no-load funds do not.
• D) No-load funds do not charge when you buy shares and load funds do.
• E) No-load funds have no charges for purchases, but fees are charged to sell them, and load funds have fees at the beginning and at the end.

---

Definitions:

Overhead Costs

Overhead costs are the indirect expenses associated with running a business that are not directly tied to a specific product or service, including utilities, rent, and management salaries.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant to allocate overhead costs to production activities.

Machine Hours

A measure of production time, calculated as the total number of hours machines are operated in the production process.

Overhead Assigned

The process of allocating indirect costs, such as utilities or rent, to specific products or departments within a company.