Which of the Following Is an Example of a "Warrant

question 73

Multiple Choice

Which of the following is an example of a "warrant"?

• A)Right to buy 100 shares of CIBC at $50.00 per share over the next 5 years.
• B)Commitment to buy 100 barrels of oil next month at $125/barrel.
• C)Commitment to buy $100,000 U.S. dollars in 4 months at US$ = 1.10.
• D)Pay interest at prime +3% in exchange for receiving interest at 5%.

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Definitions:

Standard Direct Materials

The predetermined cost and quantity of direct materials that are expected to be used in the production of a product.

Direct Materials Price

The cost per unit of raw materials used in the production of goods.

Standard Costs

predetermined costs assigned to goods and services, used as a benchmark for measuring performance.

Standard Price

The predetermined cost of acquiring goods and services, often used in budgeting and cost control.