Bonds with _____ Default Risk and ________ Marketability Have Higher

question 28

Multiple Choice

Bonds with _____ default risk and ________ marketability have higher yield spreads.

• A) higher, less
• B) lower, more
• C) slightly higher, more
• D) higher, slightly less

---

Definitions:

Actual Output

The real quantity of goods or services produced by a company, as opposed to estimated or planned production levels.

Standard Cost System

An accounting system that uses predetermined costs for products or services to facilitate variance analysis and budgeting.

Direct Labour Hours

Total hours accumulated by workers directly involved in the fabrication process.

Direct Materials Inventory

The total cost of raw materials that are directly involved in the manufacturing of a product and are currently held in inventory.