Plain Vanilla Interest Rate Swaps Are Exchanges of

question 56

Multiple Choice

Plain vanilla interest rate swaps are exchanges of

• A) principle only.
• B) interest only.
• C) principle and interest.
• D) principle and currency.
• E) interest rate and currency.

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Definitions:

Estimated Overhead Cost

An approximation of the indirect costs associated with production, used for budgeting and pricing purposes.

Activity Cost Pools

Activity Cost Pools are aggregations of all the costs associated with particular activities used in activity-based costing to allocate overhead costs more accurately.

Predetermined Overhead Rates

Rates used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated overhead costs and activity levels.

Activity-Based Costing

A method of costing that identifies activities in an organization and assigns the cost of each activity to products or services according to the actual consumption of each.