Islamic Promissory Forward Contract IPFC

question 65

True/False

Islamic promissory forward contract IPFC. which is structured in a manner that reflects the concept of wa'd promise. is used as a tool for risk management in Islamic financial transactions.

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Definitions:

Operating Income

Income generated from a company's regular business operations, excluding expenses such as taxes and interest charges.

Variable Costs

Expenses that vary directly with the level of production or sales, such as materials and labor.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in zero profit or loss.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums, remaining constant regardless of variations in business activity.