Class C Shares, Because of Their Ongoing, Higher 12b-1 Fees

question 106

True/False

Class C shares, because of their ongoing, higher 12b-1 fees, are often more expensive than Class A or Class B shares over a long period of time.

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Definitions:

Manufacturing Overhead

All indirect costs related to manufacturing, excluding direct materials and direct labor, such as factory rent, utilities, and equipment depreciation.

Absorption Costing

A method for determining the cost of a product by including all manufacturing expenses, like material costs, labor fees, and both changeable and stationary overheads.

Variable Production Costs

Costs that vary directly with the level of production, such as raw materials and direct labor expenses.

Variable Costing

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