The Basic Differences)between Forward and Futures Contracts Is That

question 4

Multiple Choice

The basic differences) between forward and futures contracts is that

• A)forward contracts are individually tailored while futures contracts are standardized
• B)forward contracts are negotiated with banks whereas futures contracts are bought and sold on an organized exchange
• C)forward contracts have no daily limits on price fluctuations whereas futures contracts have a daily limit on price fluctuations
• D)all of the above

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities and resources consumed in the production process.

Tech Support

Assistance provided by companies to consumers facing technical problems or issues with electronic devices or software.

Time-Driven

Refers to activities or systems where performance or output is measured in relation to the amount of time taken to complete them.

Activity-Based Costing

Accounting practice that assigns costs to products or services based on the precise resources they consume, offering more accuracy in costing.