Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) Zero-coupon Treasury securities with maturities longer than one year also trade in the bond market.
• B) Treasury securities are initially sold to the public through dealers.
• C) Municipal bonds ("munis") are issued by provincial and local governments.
• D) Municipal bonds' distinguishing characteristic is that the income on municipal bonds is not taxable at the federal level.

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Definitions:

Direct Materials Purchases Variance

A measure used in managerial accounting to compare the actual cost of direct materials to the expected cost.

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in manufacturing products or delivering services.

Labor Rate Variance

The variance between the real labor costs and the projected or normative labor costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on output levels.