____ Is (Are) Not Included in Flotation Costs

question 47

Multiple Choice

____ is (are) not included in flotation costs.

• A)Issue costs
• B)Underwriting spread
• C)Taxes paid on income earned from the proceeds through the securities firm
• D)Registration expenses

---

Definitions:

Value Basis

The underlying method used to determine the value of assets or liabilities, such as historical cost or market value.

Joint Costs

Costs incurred in the process of producing two or more products simultaneously where the costs cannot be individually attributed to a single product.

Product M

Refers to a specific good or service offered by a company, designated as "M" for differentiation.

Controllable Costs

Expenses that a manager or business unit has the authority to influence or change, such as materials or labor.