A Realized Capital Gain Is

question 94

Multiple Choice

A realized capital gain is

• A)the difference between the price of a share of stock and what the investor paid for it (i.e., the broker's fee)
• B)the difference between the original value of a piece of equipment and its depreciated value
• C)an increase in the net worth of a sole proprietorship or partnership
• D)an increase in the market value of a share of stock held by an individual
• E)the difference between the selling price and the purchase price of a share of stock

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Definitions:

Unit Product Cost

The total cost (both variable and fixed) associated with producing one unit of a product.

Total Job Cost

The sum of all costs assigned to a specific job, including materials, labor, and overhead.

Predetermined Manufacturing Overhead

An estimated overhead cost calculated before the actual production starts, used in budgeting and setting product prices.

Markup

Markup is the amount added to the cost price of goods to cover overhead and profit, determining the selling price.