Certificates of deposit that require the depositor to commit to leaving their funds in the bank for a certain period of time, in exchange for a higher rate of interest are also called time deposits Bonds.
- An account designated as a time deposit is one that the depositor has agreed to keep in the bank for a specific amount of time in exchange for a greater interest rate.
- A time deposit, sometimes known as a term deposit, is a fixed-term interest-bearing bank account.
- In comparison to a typical savings account, it enables depositors to grow their money at higher interest rates.
- Depositors have two options after the term is up: they can either withdraw their money or renew it and hold it for another term.
<h3>What is a CD certificate?</h3>
- A certificate of deposit (CD) is a type of savings account where the issuing bank pays interest in exchange for holding a specified sum of money for a predetermined length of time, such as six months, a year, or five years.
- When you cash in or redeem your CD, you receive the money you originally invested plus any interest.
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When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made.
The answer is C.
We compare between the 2 plans ( making vs buying) for explanation.
Making: you will have to incur $190,000 variable cost and $30,000 fixed cost. Total cost is $220,000
Buying: Variable cost can be avoided. Cost incurs for buying is $190,000. Besides, we save $5,000 fixe cost => fixed cost only at $25,000. Total cost $215,000.
=> Saving $5K if we buy instead of making
Explanation:
Management is the process of organizing, commanding, coordinating and controlling administrative resources. When we talk about management accounting, we relate to a company's financial resources, which are essential for profitability, payments, investments, etc., that is, so that the business can flow effectively.
Therefore, it is correct to say that managerial accounting is the accounting for effective management because accounting is an instrument of control and management for organizing financial accounts and indexes, these being essential instruments in helping to better decision making in a period of time, giving subsidies for managers to adapt and anticipate negative financial situations for example.
