A Sector Fund

question 2

Multiple Choice

A sector fund:

• A)tends to perform consistently from one year to the next.
• B)is usually highly diversified.
• C)rarely outperforms other types of funds.
• D)concentrates on investing in one industry or one commodity.
• E)is best evaluated by its past performance.

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products and services based on the resources they consume.

Order Filling

The process involved in gathering and packaging goods or materials to fulfil customer orders.

First Stage Allocations

The initial step in activity-based costing where overhead costs are allocated to various activities.

Overhead Cost

General operating costs not directly tied to a specific product or service, including utilities, rent, and administrative salaries.