Currently, the Dow Jones Industrial Average Is Computed by ________

question 58

Multiple Choice

Currently, the Dow Jones Industrial Average is computed by ________.

• A) adding the prices of 30 large "blue-chip" stocks and dividing by 30
• B) calculating the total market value of the 30 firms in the index and dividing by 30
• C) measuring the current total market value of the 30 stocks in the index relative to the total value on the previous day
• D) adding the prices of 30 large "blue-chip" stocks and dividing by a divisor adjusted for stock splits and large stock dividends

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Definitions:

Standard Costing

Standard Costing is an accounting method that utilizes standard costs for materials, labor, and overhead for the purpose of controlling costs and identifying variances.

Variable Overhead

Costs that fluctuate in total with changes in activity level, such as the cost of utilities or indirect materials, associated with production or services.

Labour Rate Variance

A financial metric that measures the difference between the actual cost of labor and its expected cost based on standard rates.

Performance Report

A detailed report comparing budgeted data to actual data.