Which of the Following Statements Best Describes a Swap

question 23

Multiple Choice

Which of the following statements best describes a swap?

• A)It is a contract in which two parties agree to exchange financial securities.
• B)It is a contract in which two parties agree to exchange a series of future cash flows over a specified period of time.
• C)It is a contract in which two parties agree to exchange assets.
• D)Swap is an acronym for 'savings with annual payments'.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected variable overhead costs based on standard cost accounting practices.

Direct Labor-hours

The whole amount of production time by workers intimately involved in manufacturing.

Variable Manufacturing Overhead

Indirect manufacturing costs that fluctuate with production volume, such as utilities and indirect materials.

Standard Costing System

is an accounting method used to estimate the cost of production, based on standard costs for materials, labor, and overhead, for the purpose of budgeting and cost control.