What Are the Four Basic Types of Contracts or Instruments

question 34

Essay

What are the four basic types of contracts or instruments used in financial risk management?

---

Definitions:

Factory Overhead

The indirect costs associated with manufacturing, including but not limited to utilities, maintenance, and management salaries.

Product Cost

The total expense incurred to produce a product, including the costs of raw materials, labor, and overhead.

Machine Operators

Workers responsible for setting up, operating, and maintaining machines or equipment in a manufacturing or production facility.

Factory Overhead

Indirect costs associated with manufacturing, including utilities, maintenance, and depreciation of production facilities, not directly attributed to a specific product.