When using the percentage change in the credit spread as a measure of the credit spread change, what assumption is being made?
What will be an ideal response?
When using the percentage change in the credit spread as a measure of the credit spread change, one is assuming that the change in the credit spread is proportional to the level of the credit spread. This means that securities with wider spreads are likely to have larger spread changes than those with tight spreads.
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Kale Corporation's budgeted fixed factory overhead costs are $25,00 . per month plus a variable factory overhead rate of $8.00 per direct labor hour. The standard direct labor hours allowed for November production were 10,000 . An analysis of the factory overhead indicates that in November Kale had a favorable flexible-budget variance of $1,500 and an unfavorable production-volume variance of
$500 . Kale uses a two-variance analysis of overhead variances. The actual factory overhead incurred in October is: a. $105,500. b. $104,500. c. $106,500. d. $103,500.
The daily output required from an assembly line is 600 units. If the line operates 12 hr a day, what is the cycle time per unit?
A. 1 min and 12 s B. 3 min and 18 s C. 6 min and 44 s D. 8 min and 28 s
A company's president or chief executive officer (CEO) is selected by the stockholders.
Indicate whether the statement is true or false.
There are four types of witnesses
a. True b. False