Late Trading and Market Timing

question 5

Multiple Choice

Late trading and market timing

• A) allow large, favored investors in a mutual fund to profit at the expense of other investors in the fund.
• B) hurt ordinary investors by increasing the number of fund shares and diluting the fund's net asset value.
• C) are both A and B of the above.
• D) are none of the above.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the standard or expected cost, often analyzed in cost accounting.

Labor Efficiency Variance

Labor Efficiency Variance measures the difference between the actual hours worked and the standard hours expected for the work performed.

Direct Labor Wage

The compensation workers receive for directly contributing to the manufacturing or production of goods, usually an hourly wage or per unit produced rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production level.