A Cost Variance Is Caused by -

question 10

Multiple Choice

A cost variance is caused by -

• A)a purchase order with the same price as the default
• B)a new price that is different from the old price
• C)the inventory level drops below zero
• D)b and c above

---

Definitions:

Spot Rates

The current price at which a particular security, currency, or commodity can be bought or sold for immediate delivery.

Cash-Flow Hedge

A form of hedge accounting that protects against the variability in cash flows of a recognized asset or liability, or a forecasted transaction.

Other Comprehensive Income

Gains and losses that are not included in net income, but affect shareholders' equity, including items like unrealized gains or losses on foreign currency translations and on investment securities.

Forward Contract

A customized financial agreement between two parties to buy or sell an asset at a specified price on a future date, often used for hedging risks.