The Holding Period Return for Mutual Funds Should Be Based

question 19

Multiple Choice

The holding period return for mutual funds should be based on

• A) net asset value exclusively.
• B) dividend income exclusively.
• C) capital gains distributions exclusively.
• D) capital gains distributions, dividends and change in net asset value.

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Definitions:

Overhead Cost

Expenses related to the operation of a business that cannot be directly traced to a specific product or service, such as rent, utilities, and administrative costs.

First Stage Allocations

The initial process of distributing overhead costs to various cost pools or departments in activity-based costing.

Activity Rate

The cost driver rate in activity-based costing used to assign costs to cost objects, based on each cost object's usage or creation of costs.

Processing Activity

Refers to operations or work performed in a systematic sequence to alter materials or information.