The ________ Measure of Returns Ignores Compounding

question 62

Multiple Choice

The ________ measure of returns ignores compounding.

• A) geometric average
• B) arithmetic average
• C) IRR
• D) dollar-weighted

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Definitions:

Factory Payroll

The total compensation paid to all employees working within a manufacturing plant or factory.

Overhead Applicable

The portion of overhead costs that are assigned to a specific product, service, or job based on a predetermined rate or method.

Direct Materials

Raw materials that are directly traceable to the manufacturing process of a specific product and integral to its production.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to consumers.