Which of the Following Is an Example of a Materials

question 157

Multiple Choice

Which of the following is an example of a materials price standard?

• A) $40 per direct labor hour
• B) 4.5 square feet per unit
• C) $0.95 per square foot
• D) 0.5 direct labor hours per unit

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Definitions:

Required Return

The minimum expected return by investors for undertaking an investment, considering its risk and the time value of money.

Index Fund

A type of mutual fund or exchange-traded fund designed to replicate the performance of a specific market index by holding the same investments as the index.

Market Risk Premium

The extra yield an investor anticipates by keeping a risky market portfolio over risk-free securities.

Beta

An indicator of how much the risk or instability of a security or portfolio deviates from the broader market.