In the corn futures contract a number of different types of corn can be delivered (with price adjustments specified by the exchange) and there are a number of different delivery locations. Which of the following is true
A. This flexibility tends increase the futures price.
B. This flexibility tends decrease the futures price.
C. This flexibility may increase and may decrease the futures price.
D. This flexibility has no effect on the futures price
B
The party with the short position chooses between the alternatives. The alternatives therefore make the futures contract more attractive to the party with the short position. The lower the futures price the less attractive it is to the party with the short position. The benefit of the alternatives available to the party with the short position is therefore compensated for by the futures price being lower than it would otherwise be.
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Which of the following statements does not describe the benefits of a pull strategy?
A. It becomes more efficient than a push approach when demand is uncertain and difficult to forecast. B. It increases inventory turnover. C. There exists less likelihood of being overstocked or out of stock because the store orders merchandise as needed on the basis of consumer demand. D. It is more responsive to changes in customer demand. E. All of these statements are benefits of a pull strategy.
The flexible budget variance is the difference between the ________.
A) actual results and the expected results in the flexible budget for the actual units sold B) expected results in the flexible budget for the units expected to be sold and the static budget C) flexible budget and actual amounts due to differences in volumes D) flexible budget and static budget due to differences in fixed costs
________ include banks, credit companies, insurance companies, and other businesses that help insure against the risks associated with the buying and selling of goods
A) Financial intermediaries B) Physical distribution firms C) Resellers D) Marketing services agencies E) Wholesalers
In a decision tree, a square symbol represents a state of nature node
Indicate whether the statement is true or false