When Does Delivery Occur on a 90-Day Forward Contract

question 23

Multiple Choice

When does delivery occur on a 90-day forward contract?

• A) in 90 days corresponding to two business days preceding the third Wednesday of the month
• B) immediately but the contract is not closed for 90 more days
• C) in 90 days corresponding to the calendar date of the spot value date
• D) two business days following the spot value date

Apply the concept of variance analysis in different manufacturing scenarios to assess operational efficiency.

Understand and apply the concept of standard costing in manufacturing.

Calculate and analyze direct material variances including price and quantity variances.

Calculate and analyze direct labor variances including rate and efficiency variances.

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Definitions:

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and satisfy its investors and creditors.

Financial Decision Making

The process of making choices related to investments, budgeting, and spending strategies to optimize financial goals.

Top Managers

Executives at the highest level of organizational management who are responsible for the overall direction and success of the company.

Economic Value Added

A measure of a company's financial performance that shows the net profit earned above the cost of capital.