An "Option" Is

question 24

Multiple Choice

An "option" is

• A)a contract giving the seller (writer)of the option the right,but not the obligation,to buy (call)or sell (put)a given quantity of an asset at a specified price at some time in the future.
• B)a contract giving the owner (buyer)of the option the right,but not the obligation,to buy (call)or sell (put)a given quantity of an asset at a specified price at some time in the future.
• C)a contract giving the owner (buyer)of the option the right,but not the obligation,to buy (put)or sell (call)a given quantity of an asset at a specified price at some time in the future.
• D)a contract giving the owner (buyer)of the option the right,but not the obligation,to buy (put)or sell (sell)a given quantity of an asset at a specified price at some time in the future.

---

Definitions:

Direct Materials Purchases Variance

the difference between the actual cost of direct materials purchased and the expected (or standard) cost, indicating how effectively a company is managing its resources.

Standard Labor-Hours

A pre-determined measure of the amount of labor time expected to complete a single unit of production or perform a task, often used in cost accounting.

Standard Amount

A benchmark or norm for measuring performance, often used in budgeting and accounting to set expected costs or outputs.

Variable Manufacturing Overhead

Refers to the production costs that change in proportion to the amount of production output, excluding direct materials and direct labor costs.