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Concerning the volume of foreign exchange market trading, forward transactions and foreign-exchange options are the two dominant instruments of foreign exchange.
Nonproduction Costs
Expenses not directly associated with the manufacturing or production of goods, such as selling, administrative, and other overhead costs.
Production Costs
Expenses directly associated with the creation of goods or services, including raw materials, direct labor, and manufacturing overhead.
Markup
The amount added to the cost price of goods to cover overhead and profit.
Predetermined Overhead Rate
A rate used to allocate indirect costs to products or services, estimated before the costs are incurred.
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