Duration Is Defined As

question 32

Multiple Choice

Duration is defined as:

• A)the weighted-average time to maturity of a series of cash flows, using the relative present values of the cash flows as weights
• B)the weighted-average present values of a series of cash flows using the timing of the cash flows as weights
• C)the standard deviation of the time to maturity of a series of cash flows
• D)an asset's or a liability's time to maturity

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Definitions:

Flexible Manufacturing System

An arrangement of machines interconnected by a transport system, designed to adapt to changes in the product being produced.

Prime Costs

The total of direct materials and direct labor costs associated with the production of goods.

Specialized Electronic Parts

Electronic components designed for specific applications or uses, often critical for the performance of specialized equipment.

Supplied Resources

The materials, labor, and other inputs provided for production or service delivery processes.