The Value of an Interest Rate Futures Contract Will Go

question 31

Multiple Choice

The value of an interest rate futures contract will go up when

• A) gold prices rise.
• B) interest rates go up.
• C) gold prices fall.
• D) interest rates go down.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the actual production level, multiplied by the standard labor rate.

Direct Materials

The raw materials that are directly traceable to a finished product and are an integral part of the finished product.

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks against which to compare the actual production costs.

Direct Material

Raw materials that are directly traced and assigned to the production of a specific product.