Futures Margin Is Defined as the Deposit of Funds into a Futures

question 20

Multiple Choice

Futures margin is defined as the deposit of funds into a futures trading account for which one of the following purposes?

• A)purchase additional futures contracts
• B)take a hedge position in the future
• C)cover potential losses from outstanding positions
• D)cover the trading costs and commissions
• E)cover the future costs of reversing the position

Understand the process and significance of preparing a cost of goods sold budget.

Understand the composition of product costs under variable costing.

Identify which costs are included in the cost of products manufactured under the absorption costing concept.

Distinguish between variable and absorption costing in the treatment of fixed and variable costs.

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Definitions:

Linear Perspective

A monocular cue for depth perception, where parallel lines appear to converge in the distance, helping the brain perceive spatial relationships.

Brightness

The attribute of visual perception in accordance with which an area appears to emit more or less light.

Perceptual Constancy

The brain's ability to recognize that an object's characteristics (such as size, color, and shape) remain the same despite changes in the environment or perspective.

Phi Phenomenon

An optical illusion of perceiving continuous motion between separate objects viewed rapidly in succession.