The Direct Material Cost Is £10,000 When 2,000 Units Are

question 30

Multiple Choice

The direct material cost is £10,000 when 2,000 units are produced. What is the direct material cost for 2,500 units produced?

• A)£10,000
• B)£8,000
• C)£15,000
• D)£12,500

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Definitions:

General Obligation Bond

A municipal bond backed by the full faith and credit of the issuing authority, with repayment guaranteed by the authority's ability to tax.

Revenue Bond

A type of municipal bond supported by the revenue from a specific project, like a toll road or public utility, rather than from tax revenue.

Secured Bond

A type of bond backed by the issuer's assets, providing a safeguard to bondholders by promising specific collateral in case of default.

Pass-through Bond

A type of security that pools investments and passes the income from these investments through to the investors.