Securitization Refers to the Creation of New Securities by _________

question 52

Multiple Choice

Securitization refers to the creation of new securities by _________.

• A) selling individual cash flows of a security or loan
• B) repackaging individual cash flows of a security or loan into a new payment pattern
• C) taking an illiquid asset and converting it into a marketable security
• D) selling financial services overseas as well as in the U.S.

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Definitions:

Work in Process Inventory

Represents goods that are partially completed in the manufacturing process, not yet ready for sale.

Direct Labor Variances

The difference between the estimated cost of direct labor and the actual direct labor cost incurred.

Controllable Variance

Controllable variance is a measure used in managerial accounting to assess the differences between actual and budgeted amounts that management can influence or control.

Variable Overhead Costs

Variable overhead costs fluctuate with changes in production volume, including costs like utilities and raw materials not directly tied to a product.