Which of the Following Is True of the Dow Jones

question 48

Multiple Choice

Which of the following is true of the Dow Jones Industrial Average?

• A) It is a value-weighted average of 30 large industrial stocks.
• B) It is a price-weighted average of 30 large industrial stocks.
• C) The divisor must be adjusted for stock splits.
• D) a and c.
• E) b and c.

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Definitions:

Direct Labor-Hours

The total hours of labor work directly on manufacturing the goods or providing the services, used for allocating labor costs to products or services.

Prefab Barns

Pre-engineered buildings designed for agricultural or storage purposes, which come in kits for quick and easy assembly.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the base.

Activity-Based Costing

A costing technique that assigns costs to products or services based on the activities and resources that contribute to the production or delivery.