A Basis Point Is Equal to One Hundredth of a Percentage

question 24

True/False

A basis point is equal to one hundredth of a percentage point.

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Definitions:

Yield

The income return on an investment, expressed as a percentage of the investment’s cost or current value.

Applied Factory Overhead

The allocation of factory overhead costs to units produced, based on a predetermined rate or method.

Direct Materials

Raw materials that can be directly attributed to the production of a specific product, constituting a significant part of manufacturing cost.

Continuous Process

A production system where materials are processed and manufactured in a non-stop, consistent manner.