Which One of the Following Is the Definition of the Term

question 85

Multiple Choice

Which one of the following is the definition of the term "basis"?

• A)initial cost of purchasing a futures contract
• B)future price of a transaction that is agreed upon today
• C)difference between the cash and futures price of a commodity
• D)the expected future price of a commodity based on the current spot price
• E)the expected spot price of a commodity based on the future price

---

Definitions:

Composite Units

A measurement used in accounting to collectively represent a group of similar items or transactions as a single entity.

Break-Even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor a loss.

Sales Mix

The combination of different products or services that a company sells, influencing overall sales volume, revenues, and profits.

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in zero profit or loss.