Which of the Following Statements Is True About Secondary Markets

question 48

Multiple Choice

Which of the following statements is true about secondary markets in the United States?

• A) In terms of total stock value of the firms listed, the NASDAQ is the largest in the world and the NYSE is the second largest.
• B) NASDAQ is an OTC (over-the-counter) market.
• C) Firms listed on the NASDAQ tend to be, on average, larger in size, and their shares trade more frequently than those traded on NYSE.
• D) In the United States, most secondary market transactions are done over the counter.

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Definitions:

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.