Of the Sources of External Funds for Nonfinancial Businesses in the United

question 60

Multiple Choice

Of the sources of external funds for nonfinancial businesses in the United States,stocks account for approximately ________ of the total.

• A) 10%
• B) 20%
• C) 30%
• D) 40%

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Definitions:

Direct Labor-Hours

The total hours of work directly contributed by laborers to produce goods or services.

Manufacturing Overhead

The indirect costs involved in making a product, excluding direct materials and direct labor expenses.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, computed in advance for each period.

Traditional Costing

An accounting method that allocates overhead costs to products based on a single, volume-based cost driver, such as direct labor hours.