A Long Position in a Futures Contract Can Be Canceled

question 28

True/False

A long position in a futures contract can be canceled by selling a futures contract (i.e., a contract to make delivery).​

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Definitions:

Raw Materials Inventory

The stock of unprocessed materials used in the production of goods.

Invoice Costs

Invoice costs refer to the total amount billed to a customer for goods or services purchased, including the cost of the products, shipping, and any other charges.

Freight Costs

Expenses incurred by a company to transport goods, typically categorized as either inbound or outbound freight.

Process Costing

An accounting methodology used for homogeneous products, where the costs are assigned to batches of products instead of individual units, suitable for manufacturing environments with continuous production processes.