The Following Company Information Is Available for March

question 175

Multiple Choice

The following company information is available for March. The direct materials price variance is:

• A) $5,000 favorable.
• B) $300 favorable.
• C) $5,200 unfavorable.
• D) $5,000 unfavorable.
• E) $5,200 favorable.

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Definitions:

Unsystematic Risk

The danger linked to a particular business or sector, which can be lessened by spreading investments across different areas.

Well-Diversified Portfolio

A collection of investments across various asset classes and industries intended to reduce risk through the principle of diversification.

Historical Relationship

A reference to the way entities or variables have interacted or correlated with one another in the past.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its riskiness.