Which of the Following Is True About Stock Transactions and Fees

question 25

Multiple Choice

Which of the following is true about stock transactions and fees?

• A)When purchasing stock, the cost of the brokerage fees should be subtracted.
• B)When selling stock, the cost of the brokerage fees should be added.
• C)Online fees and full service fees are usually a percent of the transaction.
• D)Online fees are often flat fees and full service brokerage fees a percent of the transaction.

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Definitions:

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used as a benchmark to measure performance.

Nutrition Drink

A beverage designed to provide dietary supplements or essential nutrients that might be missing or insufficient in a person's diet.

Labor Price Variance

The difference between the actual cost of direct labor and the standard cost, typically associated with the rate paid for labor.

Labor Quantity Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.