Financial Management - Study Mode
[#76] Fixed cost per unit _______.
Correct Answer
(C) changes according to volume of production
Explanation
Solution: Fixed cost per unit changes according to volume of production. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
[#77] Re-order level is ____________than safety level.
Correct Answer
(A) higher
Explanation
Solution: Re-order level is higher than safety level. Reorder level (or reorder point) is the inventory level at which a company would place a new order or start a new manufacturing run.
[#78] The most popular type of Investment Company is a ________.
Correct Answer
(B) mutual fund
Explanation
Solution: The most popular type of Investment Company is a mutual fund. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.
[#79] Variable cost in an organization
Correct Answer
(B) changes with the volume of production
Explanation
Solution: Variable cost in an organization changes with the volume of production. A variable cost is a cost that changes in relation to variations in an activity. In a business, the "activity" is frequently production volume, with sales volume being another likely triggering event.
[#80] An unmanaged fixed income security portfolio handled by an independent trustee is known as a______________.
Correct Answer
(D) hedge fund
Explanation
Solution: An unmanaged fixed income security portfolio handled by an independent trustee is known as a hedge fund. A hedge fund is an investment fund that pools capital from accredited investors or institutional investors and invests in a variety of assets, often with complicated portfolio-construction and risk management techniques.