You Are Calculating the Bank Discount Yield of a Canadian

question 109

Multiple Choice

You are calculating the bank discount yield of a Canadian Treasury bill on March 15, 2009. You would use __________ days in the calculation.

• A) 360
• B) 365
• C) 366
• D) 365 or 366
• E) Insufficient information.

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Definitions:

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.

Cost Of Goods Sold

The expenses directly related to the manufacturing of products a company sells, encompassing both materials and labor costs.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost, used to control and manage costs.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected to complete a task, multiplied by the standard hourly labor rate.