(Appendix 5A)Which of the Following Best Describes a Cost Object,such

question 24

Multiple Choice

(Appendix 5A) Which of the following best describes a cost object,such as a product or customer,that has a positive red margin?

• A) Its green margin will be positive.
• B) Its green margin may be positive,negative,or zero.
• C) Its green margin will be negative.
• D) Its green margin will be zero.

---

Definitions:

Price Sensitive

Characteristic of information or news that could influence the price of securities if it were made public.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a discount from its face value and redeemed at par at maturity.

Immunization Strategies

Financial strategies used to shield a bond portfolio from the effects of interest rate fluctuations by balancing the duration of assets and liabilities.

Interest Rate Sensitivity

The degree to which the value of an investment, particularly fixed-income securities, changes in response to variations in interest rates.