Which of the Following Is True of Arbitrage

question 28

Multiple Choice

Which of the following is true of arbitrage?

• A)It is the revenue from the sale of a used product.
• B)It is the resale of a product among market segments.
• C)It is the profit from initial sales of a product.
• D)It is the ability of a firm to discriminate prices among customers.

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Definitions:

Revenue Variances

Differences between actual revenue and budgeted or forecasted revenue figures.

Budgets

Financial plans that estimate future income, expenditures, and resources over a specific period.

Standard Cost System

A cost accounting system that compares actual costs to predetermined or standard costs to help in budgeting and variance analysis.

Materials Quantity Variance

A calculation that shows the difference between the actual amount of materials used and the expected amount, which can indicate issues in efficiency or procurement.