Which of the Following Is Not an Instance of "Insider

question 24

Multiple Choice

Which of the following is not an instance of "insider trading"?

• A) An auditor using nonpublic information about the company to invest in its stock.
• B) A marketing executive briefing stock analysts on the company's sales performance.
• C) The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company.
• D) A stock broker passing an "inside tip" to a client, but not trading for his or her own account.

---

Definitions:

Plantwide Predetermined Manufacturing Overhead Rate

A single overhead absorption rate calculated for an entire factory, used to allocate manufacturing overhead costs to products.

Machine-Hours

A measure of production output or activity based on the total number of hours machines are operated.

Manufacturing Overhead

All manufacturing costs not directly assignable to specific products. This includes costs related to indirect materials, indirect labor, and factory-related expenses.

Estimated Total

A projection or approximation of the total value, quantity, or extent of something.