The Market Where an Investor Could Sell T-Bills That He

question 70

Multiple Choice

The market where an investor could sell T-bills that he owns is called the

• A)primary market.
• B)secondary market.
• C)stock market.
• D)T-bill market.

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Definitions:

Direct Labor-Hours

The total number of labor hours spent on the production of goods or services.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, based on the estimated overhead costs and estimated level of activity, used to apply overhead costs to products.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the actual consumption of resources.

Traditional System

A cost accounting system that allocates overhead based on a single or few measures of activity, such as direct labor hours or machine hours.