Under the UCP,the Description of the Goods in the Commercial

question 40

Multiple Choice

Under the UCP,the description of the goods in the commercial invoice must correspond with the description in the credit.In all other documents,the goods may be described _____

• A) in perfect conformance with the credit.
• B) in general terms not inconsistent with the description of the goods in the credit.
• C) in specific terms as requested by the buyer.
• D) in general terms consistent with the contract for the sale of goods.

---

Definitions:

Variable Costing

A method of inventory costing that includes only variable production costs (materials, labor, and variable overhead) in the cost of goods sold, treating fixed overhead as a period expense.

Net Operating Income

The profit a company makes after deducting operating expenses like wages, depreciation, and cost of goods sold, but before interest and taxes.

Operating Loss

A situation where a company's operating expenses exceed its gross profits or revenues, indicating that it is not making money from its core operations.

Year 2

Commonly refers to the second year of operation or existence in various contexts, such as financial reporting or the lifespan of an asset.