A Type of Index That Weighs Each Company by Its

question 71

Multiple Choice

A type of index that weighs each company by its total market value as a percentage of the total market value for all firms is:

• A)An equal-weighted index
• B)A value-weighted index
• C)An equally-weighted index
• D)A price-weighted index

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Definitions:

Management Accounting

A branch of accounting that focuses on the preparation and analysis of financial information for internal decision-makers within an organization.

Insignificant Variance

A financial term referring to small differences between expected and actual figures that are not considered material for decision-making purposes.

Cause

A reason for an action or condition, or something that brings about an effect or result.

Variance

The difference between planned, budgeted, or standard costs and actual costs, often analyzed to control spending and improve financial management.