Derivatives Include

question 87

Multiple Choice

Derivatives include

• A)an option to purchase a share of stock.
• B)a commitment to purchase a certain amount of foreign currency in the future.
• C)interest rate, foreign exchange rate, and commodity price hedges.
• D)all of the above
• E)none of the above

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Definitions:

Standard Costing

An accounting method that uses standard costs for cost control and financial reporting.

Variable Manufacturing Overhead

Manufacturing overhead costs that fluctuate with the level of production activity.

Overhead Rate Variance

The difference between the actual overhead costs incurred and the standard overhead costs assigned to production.

Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (budgeted) cost of those materials.