A Check Is Dishonored If

question 10

Multiple Choice

A check is dishonored if:

• A) it is presented for payment directly to the payor/drawee bank for immediate payment,which is refused.
• B) a payor bank makes timely return of the check.
• C) the payor bank becomes accountable for the amount of the check but has not yet made payment.
• D) All of these.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead.

Direct Labor

Direct labor comprises the labor costs of workers directly involved in the production of goods or services.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a unit of product.

Fixed Manufacturing Overhead

Ongoing expenses that do not change in total with the level of production or sales volume, such as salaries, rent, and insurance, associated specifically with the manufacturing process.