If You Own a Share of Stock in a Company

question 6

Multiple Choice

If you own a share of stock in a company and the risk associated with its business rises you would expect

• A) a capital gain.
• B) a capital loss.
• C) a higher dividend.
• D) a bubble.

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output and may include expenses such as indirect materials, utilities, and overtime labor.

Raw Materials

Primary substances or components that are converted through the manufacturing process into a finished product.

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected quantity, based on standard costs.

Direct Labor-Hours

The gross hours worked by personnel directly implicated in production operations.