Five Months Ago,you Purchased 200 Shares of a Mutual Fund

question 12

Multiple Choice

Five months ago,you purchased 200 shares of a mutual fund at an offering price of $54 a share.The fund imposes a front-end load of 4.5 percent and has total annual expenses of 1.08 percent.The NAV of the fund today is $52.40.There were no fund distributions during these five months.What is your holding period return on this investment?

• A) -2.96 percent
• B) -1.92 percent
• C) 1.44 percent
• D) 1.89 percent
• E) 2.26 percent

Understand the notion of activity-based management and its focus on eliminating waste.

Differentiate between traditional costing and activity-based costing systems.

Understand the weighted-average method in process costing.

Calculate equivalent units of production for both materials and conversion costs.

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Definitions:

Standard Labor-Hours

The predetermined amount of labor time estimated for the completion of a task or production of goods under normal conditions.

Machine-Hours

The total hours that machines are in operation during the production process, used as a basis for allocating manufacturing overhead.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent and salaries.

Volume Variance

The difference between the budgeted and actual volume of production, affecting the budgeted levels of costs or revenues.