If You Have an Asset That You Will Be Selling

question 48

Multiple Choice

If you have an asset that you will be selling during the next two weeks, then you might be able to hedge the proceeds from the asset sale by:

• A) purchasing a call option on the asset.
• B) purchasing a put option on the asset.
• C) purchasing more of the asset.
• D) none of the above.

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Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Job Cost Sheet

A record or document used in job order costing that summaries the costs associated with a particular job, including materials, labor, and overhead.

Job Order Costing

An accounting system used to calculate the cost of producing specific products or jobs, which may vary in materials, labor, and overhead.

Producing a Job

An approach to manufacturing where goods are produced based on specific customer orders, often involving customized products.