Advantages of ECNs Over Traditional Markets Include All but Which

question 72

Multiple Choice

Advantages of ECNs over traditional markets include all but which one of the following?

• A) lower transactions costs
• B) anonymity of the participants
• C) small amount of time needed to execute and order
• D) ability to handle very large orders

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Definitions:

Variable Overhead Rate

The rate at which variable overhead costs are allocated to production, based on a predetermined base such as direct labor hours or machine hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process.

Fixed Manufacturing Overhead

The static expenses related to the production process that do not vary with the level of output, such as salaries and rental costs of facilities.

Budgeted Production

The quantity of products or services that a company plans to produce during a specific period, based on forecasts.