All of the following might be a possible result of taking Felicia's advice EXCEPT which one?
A) Jorge purchases several truckloads of corn and loses money on the storage costs.
B) Jorge chooses a commodity that becomes very desirable and makes him a lot of money.
C) Jorge chooses a commodity that declines rapidly in price, and he loses a lot of money.
D) Jorge invests in a variety of goods and makes money on some and loses money on others.
E) Jorge follows the prices of the commodities he invests in very carefully.
Answer: A
Explanation: A) Commodities trading involves making a contract to buy an amount of a commodity at a future date and then selling it later for a higher price. So Choice A is correct: If Jorge invests in corn, he will unload the contract later for the money he can get for it, but he would not take physical possession of the product. Each of the other options is a realistic consequence of Jorge's engaging in this kind of investment.
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Fill in the blank(s) with the appropriate word(s).
A process cost accounting system is most appropriate when
a. a variety of different products are produced, each one requiring different types of materials, labor, and overhead. b. the focus of attention is on a particular job or order. c. similar products are mass-produced. d. individual products are custom made to the specification of customers.