Melanie Davis Is Getting Ready to Purchase Shares in a Mutual

question 25

Multiple Choice

Melanie Davis is getting ready to purchase shares in a mutual fund.The fund will charge her a sales charge only if she redeems her shares within a stated period of time.What type of shares is she buying?

• A)Class A
• B)Class B
• C)Class C
• D)Either class A or B
• E)Either class B or C

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Definitions:

Straight-Line Depreciation

A method for distributing the cost of a solid asset in even annual payments throughout its effective life.

Insurance Premiums

The amount of money that an individual or business must pay for an insurance policy.

Direct Materials Cost

The expense associated with the raw materials directly used in the production of a product.

Cost Behavior Classifications

The categorization of costs based on how they change in relation to changes in a company’s level of activity or volume.