The Two Parties Contracting to Exchange Their Respective Interest Payments

question 85

Multiple Choice

The two parties contracting to exchange their respective interest payments in an interest rate swap are formally called:

• A) options holders.
• B) counterparties.
• C) exchange parties.
• D) long and short positions.

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Definitions:

Standard Cost Variances

Refers to the differences between the standard costs planned for goods or services and the actual costs incurred.

FOH Volume Variance

A measure of the difference between the budgeted and actual overhead costs, attributable to changes in the volume of production.

FOH Budget Variance

The difference between the actual factory overhead costs incurred and the overhead costs budgeted for a specific period.

Cost of Goods Sold

The total cost directly associated with producing the goods sold by a company, including materials and labor.