Which of the following is true of payment procedures?

A. Up-front cash payment is a risk to the customers.
B. Providing credit to customers is a risk to the customers.
C. A documentary draft involves only two parties-the company and the customer.
D. A letter of credit can be exercised only with specified shipping documents.


Answer: A

Business

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Gage Company reports the following information for its first year of operations:Units produced this year 7,000unitsUnits sold this year 6,500unitsDirect materials$22per unitDirect labor$30per unitVariable overhead ?in totalFixed overhead$56,000in totalIf the company's cost per unit of finished goods using variable costing is $63, what is total variable overhead?

A. $19,500 B. $21,000 C. $77,000 D. $16,590 E. $71,500

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What are the consequences of a defective incorporation?

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