A Cost That Changes in Total in Proportion to Changes

question 65

Multiple Choice

A cost that changes in total in proportion to changes in volume of activity is a(n) :

• A)Differential cost.
• B)Fixed cost.
• C)Incremental cost.
• D)Variable cost.
• E)Product cost.

---

Definitions:

Equity Trusts

Investment funds that pool money from investors to purchase a diversified portfolio of equities, or stocks, managed by a professional fund manager.

Mortgage Trusts

Investment vehicles that pool mortgage loans and issue shares to investors, who receive dividends from the interest and principal payments made by borrowers.

REITs

Real Estate Investment Trusts, companies that own, operate, or finance income-generating real estate, allowing investors to invest in large-scale real estate properties.

Growth Fund

A type of mutual fund or investment fund that focuses on investing in growth stocks or companies expected to grow at an above-average rate compared to their industry or the market.