Use the Information for the Question(s)below

question 62

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20 000 by purchasing 400 shares of BHP Billiton (BHP) at $13 per share, 500 shares of ANZ Bank (ANZ) at $20 per share, and 200 shares of Flight Centre (FLT) at $24 per share.
-Suppose over the next year BHP has a return of 12.5%, ANZ has a return of 20%, and FLT has a return of -10%. The return on your portfolio over the year is:

• A)0%.
• B)7.52%.
• C)15.51%.
• D)10.85%.

---

Definitions:

Materials Standards

Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.

Direct Materials Purchases Variance

This term refers to the difference between the actual cost of materials purchased and the expected (standard) cost of materials needed to manufacture the products during a specific period.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.

Raw Material

The basic material from which a product is made, used in the initial stages of production.