Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A)A long call is the same as a short put
• B)A short call is the same as a long put
• C)A call on a stock plus a stock the same as a put
• D)None of the above

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Definitions:

Direct Material Units

Refers to the physical units of raw materials that are directly traceable and integral to the finished product.

Standard Costing

A cost accounting method that assigns a fixed cost to inventory and measures any variances to actual costs.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved, often related to workforce productivity.

Variable Overhead

Costs that fluctuate with the level of production or business activity, such as utilities or raw materials.