One Characteristic of 12(b)-1 Charges Is That They Are Payable

question 84

Multiple Choice

One characteristic of 12(b) -1 charges is that they are payable

• A)only in years that the mutual fund shows an increase in net asset value.
• B)each year regardless of the performance of the mutual fund.
• C)only during the first year the fund is owned.
• D)only when shares in the fund are sold.

---

Definitions:

Product Cost

The total expenses incurred to produce a product, including labor, materials, and overhead.

Per Unit

A term referring to the cost or price of a single item or service when discussing bulk production or sales.

Variable Costing

An accounting method that includes only variable production costs (costs that change with the level of production) in product costs.

Absorption Costing

A financial accounting technique that integrates all production expenses, including direct materials, direct labor, along with all variable and fixed manufacturing overhead costs, into the product's cost.