The Difference Between the Total Actual Cost Incurred and the Total

question 174

Multiple Choice

The difference between the total actual cost incurred and the total standard cost is called the:

• A)Flexible variance.
• B)Usage variance.
• C)Cost variance.
• D)Controllable variance.
• E)Volume variance.

---

Definitions:

Market Rate of Return

The average rate of return expected by investors from a market or security index over a specific time period.

CAPM

Stands for the Capital Asset Pricing Model, a model that describes the relationship between the expected return of an asset and its risk.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its price.

Trading Costs

Expenses associated with the buying and selling of securities, including commissions, spreads, and slippage.