Which of the Following Is a Characteristic of Stock

question 102

Multiple Choice

Which of the following is a characteristic of stock?

• A)Stock represents a promise to repay a fixed amount of funds.
• B)The face value or principal plus interest is repaid at a specified period of time.
• C)The length of coupon payments is fixed by the stated maturity period.
• D)Stock represents ownership in a firm

Differentiate between various types of advertising agencies and their services.

Recognize the distinctions between sales promotions tools such as coupons, deals, contests, and sweepstakes.

Outline the steps to develop an effective advertising program.

Identify advantages and disadvantages of different media for advertising.

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Definitions:

Variable Costing

This is an accounting technique that incorporates only the variable costs of production, including direct materials, direct labor, and variable manufacturing overhead, into the costs of products.

Break-even Sales

The amount of revenue needed to cover total fixed and variable costs, resulting in neither profit nor loss.

Variable Costing

An accounting method that includes only variable production costs (direct labor, direct materials, and variable overhead) in product costs, excluding fixed overhead costs.

Absorption Costing

A ledger keeping approach in accounting that wraps all costs connected to manufacturing—expenses for direct materials, wages for direct labor, and all types of manufacturing overhead, fixed and adjustable—into a product's total cost.