If Delivery Expense Is Not Traceable to a Department,it Would

question 42

Multiple Choice

If delivery expense is not traceable to a department,it would be considered a(n) :

• A)direct expense.
• B)indirect expense.
• C)profit center issue.
• D)cost center issue.

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Definitions:

Option Contract

A contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Basis Risk

The risk that the price of a hedge and the asset being hedged will not move in perfect correlation.

Call Option

A financial arrangement granting the buyer the freedom, but not the duty, to acquire an asset such as a stock, bond, commodity, at a set price within an established timeframe.