If People Suddenly Expect That a Severe Drought Will Reduce

question 151

Multiple Choice

If people suddenly expect that a severe drought will reduce the supply of grain, the price of grain futures will be:

• A) high and then bid lower.
• B) bid higher.
• C) low and bid even lower.
• D) bid lower.

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Definitions:

Controlled Costs

Expenses that can be managed or influenced by decisions of business managers, allowing organizations to adjust for efficiency and cost savings.

Material Price Variances

The difference between the actual cost of materials and the standard or expected cost, multiplied by the quantity purchased.

Time Materials

A pricing model where a customer pays based on the actual time spent on a project and the cost of materials used.

Recognition Of Variances

The process of identifying and documenting the differences between actual and budgeted costs.