Performance Fees Based on Profits Earned by the Fund Are

question 77

Multiple Choice

Performance fees based on profits earned by the fund are typical of

• A) hedge funds.
• B) exchange-traded funds.
• C) closed-end investment companies.
• D) open end mutual funds.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the production or sales volume, for instance, direct labor and raw materials.

Budgeting

The process of creating a plan to spend your money, allocating financial resources for various purposes over a specified period.

Machine-hours

A measure of the operating time of machines or equipment, typically used as a basis for allocating manufacturing overhead in product costing.

Supplies Costs

Supplies costs are expenses related to the consumable items used in the operation of a business, not directly part of the finished product.