​Which of the Following Statements Is CORRECT

question 4

Multiple Choice

​Which of the following statements is CORRECT?

• A) ​In Europe and Asia hedge funds are legal,but they are not permitted to operate in the United States.
• B) ​Hedge funds have more in common with commercial banks than with any other type of financial institution.
• C) ​Hedge funds have more in common with investment banks than with any other type of financial institution.
• D) ​In the United States hedge funds are legal,but in Europe and Asia they are not permitted to operate.
• E) ​The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds,and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.

---

Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard costs for the actual production achieved.

Actual Direct Labour Rate

The actual cost per hour paid to workers for their labor.

Standard Labour Rate

The predetermined cost per hour of labor, used in budgeting and costing to estimate the labor costs associated with a product.

Labour Efficiency Variance

Labour efficiency variance is the difference between the actual labor hours used and the standard labor hours expected for the output level achieved, reflecting labor efficiency.