The Process of Attempting to Determine All Cost Elements Such

question 4

Multiple Choice

The process of attempting to determine all cost elements such as acquisition price,purchasing administration,follow-up,expediting,inspection and testing,rework,scrap,downtime,lost sales and customer returns is called:

• A)activity-based costing.
• B)total cost of ownership.
• C)target costing.
• D)competitive bidding.
• E)learning curve.

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Definitions:

Arbitrage

The practice of exploiting price differences for the same asset in different markets by simultaneously buying and selling the asset to take advantage of those price differences.

Risk-free Rate

A forecasted return rate on a risk-free investment, usually shown through government security yields.

Futures Price

The agreed-upon price for the underlying asset in a futures contract to be paid at a future date.

Short Position

The futures trader committing to deliver the underlying asset.