Trading in Financial Futures Is Similar to Trading in Commodities

question 33

True/False

Trading in financial futures is similar to trading in commodities except for considerably higher margin requirements for financial futures.

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Definitions:

Normal Capacity

The average level of production or activity that a company can expect to achieve under normal conditions over a period.

Controllable Variance

The portion of variance in cost or revenue that can be directly managed or influenced by actions of the management.

Standard Factory Overhead Rate

A predetermined rate used to allocate expected overhead costs to individual units of product based on a standard cost system.

Machine Hour

A unit of measure representing one hour of work or operation by a machine, used in allocating manufacturing costs.