A Standard Is

question 13

Multiple Choice

A standard is

• A)usually expressed on a per unit basis.
• B)consistently calculated in manufacturing companies.
• C)always the same as a budgeted amount.
• D)only set within the company.
• E)never expressed on a per unit basis.

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Definitions:

Market Price

The ongoing price point for buying or selling a service or asset in the market.

Put Option

An agreement that allows the holder to sell a predetermined quantity of a particular asset at an agreed-upon price before a certain deadline, without being required to do so.

Exercise Price

The exact price at which an option's holder is allowed to purchase (for a call option) or sell (for a put option) the asset underlying the option.

Stock Price

The amount of money it would cost to purchase one share of a company; determined by supply and demand in the market.