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What Are the Information Costs Associated with Forward Contracts

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What are the information costs associated with forward contracts?


Definitions:

Special Order

An order that is outside a company's normal production schedule, often requiring customization and priced differently from standard products.

Milling Machine Time

The duration or amount of time a milling machine is used in the production process, often considered a manufacturing overhead cost.

Additional Minute

An extra unit of time added to a process or activity beyond the original plan.

Existing Capacity

The current maximum level of output that a company can achieve with its available resources, such as facilities, equipment, and workforce.

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