Futures Contracts __________ Traded on an Organized Exchange, and Forward

question 55

Multiple Choice

Futures contracts __________ traded on an organized exchange, and forward contracts __________ traded on an organized exchange.

• A) are not; are
• B) are; are
• C) are not; are not
• D) are; are not
• E) are; may or may not be

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Definitions:

Overhead

Indirect costs related to the day-to-day running of a business, excluding direct costs like labor and materials.

Unfavorable Volume Variance

A cost variance that occurs when the actual volume of production or sales negatively deviates from expected volumes, often leading to higher costs or lower profits.

Failure To Maintain

A situation where the required level of upkeep, documentation, or regulatory compliance has not been sustained.

Machine Breakdowns

Occurrences when machinery fails or malfunctions, potentially halting production processes and incurring additional costs for repairs.