Which of the Following Statements Is/are True

question 63

Multiple Choice

Which of the following statements is/are true?

• A) The standard cost per unit of materials is used to calculate a materials price variance.
• B) The standard cost per unit of materials is used to calculate a materials usage variance.
• C) The standard cost per unit of materials cannot be determined until the end of the period.
• D) The standard cost per unit of materials is used to calculate a materials price variance AND the standard cost per unit of materials is used to calculate a materials usage variance.

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Definitions:

Diverse Securities

A variety of financial instruments that an investor holds, including stocks, bonds, and commodities, to reduce risk through diversification.

Portfolio Weight

The percentage composition of a particular holding in comparison to the total investment amount.

Portfolio Weight

The percentage composition of a particular holding in comparison to the total value of the investment portfolio.

Market Risk Premium

The incremental profit expected by an investor when they decide to hold a market portfolio with risk rather than secure, riskless assets.