Use the following table:
States of the Economy Probability of the State 3-Month
T-Bill Large-Company Stock Small-Company Stock
Boom 0.3 4 10 30
Steady 0.5 4 5 20
Recession 0.2 4 0 10
What is the difference between the standard deviation of a small-company stock and a 3-month T-bill?
A) 7.0%
B) 5.5%
C) 4.0%
D) 3.5%
Answer: A
Explanation: A) 7% - 0% = 7%.
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Fill in the blank(s) with correct word
If the actual amount of direct materials used equals the standard amount of direct materials that should have been used, the difference between the standard cost and actual cost of direct materials is called the
a. price variance. b. rate variance. c. quantity variance. d. efficiency variance.
Although the purpose of the confidentiality standard is to encourage management accountants to remain loyal to their company, failure to disclose knowledge of internal illegal acts to outside authorities can result in the accountants being charged as an accessory to the crime
Indicate whether the statement is true or false
Manufacturing overhead include(s):
a. costs that the firm cannot associate with particular products. b. expenditures for factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment. c. expenditures for supervisors' salaries. d. costs that jointly benefit all goods produced during the period, not any one particular item. e. all of the above.