Which One of the Following Is the Major Difference Between

question 77

Multiple Choice

Which one of the following is the major difference between forward and futures contracts?

• A) Futures contracts are more expensive than forward contracts.
• B) Forward contracts are traded on the forward exchanges.
• C) Futures contracts are always delivered.
• D) Forward contracts are not marked to market.

Comprehend the process of calculating activity rates in an ABC system.

Understand the first and second-stage allocations in ABC.

Recognize the importance of accurately measuring activity for cost allocation.

Understand the impact of using ABC on product costing compared to traditional costing systems.

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Definitions:

Projected Unit Sales

The estimated quantity of products a company plans to sell in a future period, often used for planning and forecasting purposes.

Credit Sales

Sales in which the customer is allowed to purchase goods or services on the agreement they will pay at a later date.

Cash Receipts

Monies received by a business, recorded during the period they are received, including cash sales and collections from customers.

Projected Sales

Future sales estimates based on historical data, market analysis, and other predictive techniques.