Use the Fact Situation in Q1 to Answer the Related

question 20

Multiple Choice

Use the fact situation in Q1 to answer the related question that follows. Assume that George comes into an inheritance and pays off the TD Canada Trust mortgage in full.TD Canada Trust will give George

• A)a cancellation of the debt.
• B)a transfer of its mortgage.
• C)a discharge of its mortgage.
• D)a partial discharge of its mortgage.
• E)an assignment of its mortgage.

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Definitions:

Absorption Costing

A bookkeeping approach that encompasses all production expenses, including both constant and fluctuating costs, in the price of a good.

Unit Cost

The calculated cost assigned to a single unit of product or service, comprising all variable and fixed costs.

Mixed Cost

A cost that contains both fixed and variable components and changes in total with the level of activity, but not proportionately.

Variable Cost

Expenses that change in proportion to the activity of a business, such as production volume or units sold.