Which One of the Following Had the Highest Average Return

question 92

Multiple Choice

Which one of the following had the highest average return for the period 1926-2006?

• A) large-company stocks
• B) U.S. Treasury bills
• C) long-term government bonds
• D) small-company stocks
• E) long-term corporate bonds

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead based on the efficient usage of manufacturing resources.

Direct Material Used

The raw materials that are directly included in the finished product, easily traceable to specific goods or batches of goods.

Variable Manuf. Overhead

Expenses associated with manufacturing that vary directly with the level of production output, such as materials and utilities.

Standard Variable Overhead Rate

A predetermined rate applied to estimate the variable overheads based on a specific activity base.