The Advantages of Asset Allocation Include All of the Following

question 29

Multiple Choice

The advantages of asset allocation include all of the following except:

• A)It lessens risk for the investment program.
• B)It helps avoid the pitfall of putting all your eggs in one basket.
• C)It uses different asset classes to provide a measure of safety.
• D)It helps offset a loss in one investment with gains in other investments.
• E)It is viewed as a tool that can reduce the risk associated with short-term investment programs.

---

Definitions:

Factory Overhead

Expenses related to the operation of a manufacturing plant that are not directly tied to a specific product, including utilities, depreciation, and facility maintenance.

Direct Labor

Costs attributed to the work performed by employees who directly contribute to the manufacturing or production of goods, such as wages of assembly line workers.

Process Costing System

An accounting methodology used to allocate production costs to products based on the process they go through.

Production Departments

These are specialized areas within a manufacturing facility where specific sets of operations or tasks are carried out to produce goods.