Time Intermediation Involves the Investment of Small Amounts by Investors

question 96

True/False

Time intermediation involves the investment of small amounts by investors into mutual funds that invest in long-term securities such as stocks and bonds.

---

Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net gain or loss for a business.

Contribution Margin

Contribution margin is the amount of revenue remaining after deducting the variable costs of producing a product, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that fluctuate based on the level of a business’s activity.

Total Direct Labor Cost

The total expenses incurred from labor directly involved in the production of goods or services.