The Index Divisor

question 100

Multiple Choice

The index divisor

• A) For the DJIA is 30
• B) Remain constant once it is established
• C) Tends to increase over time
• D) Is equal to the number of stocks in the index
• E) Decreases in response to stock splits

---

Definitions:

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, not directly attributable to a specific product.

Weighted-Average Cost Method

An inventory costing method that assigns a weighted average cost to each unit of inventory on hand.

Conversion Costs

Costs incurred to convert raw materials into finished products, which typically include labor and manufacturing overhead.

Work In Process Inventory

The inventory that includes items currently being manufactured but not yet completed or ready for sale.