Francesca Withdrew $7,000 from B Shares That She Owned in the Already

question 60

Multiple Choice

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase. If she must pay a 5% contingent deferred sales fee, what will her total fee be?

• A) $0
• B) $3.50
• C) $35.00
• D) $350.00
• E) $3,500.00

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including labor, materials, and manufacturing overhead.

Job-Order Costing System

An accounting method used to track costs and evaluate the profitability of individual jobs or orders by accumulating the costs associated with a specific batch of products.

Overapplied

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred, resulting in a variance.

Underapplied

A situation where the allocated or overhead costs assigned to products or services are less than the actual overhead incurred.