A Negotiable Instrument Is

question 11

Multiple Choice

A negotiable instrument is

• A)valuable documents that can be pledged as security to another.
• B)an instrument that can be given in exchange for a promise of another.
• C)an instrument that is used in negotiations.
• D)a written promise by a party given in exchange for a promise of another.
• E)a written contract containing a promise,express or implied,to pay a specific sum of money to the order of a designated person or to bearer.

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Definitions:

Machine-Hours

A measure of production time, representing the total hours worked by machines in the manufacturing process, often used to allocate manufacturing overhead to products.

Markup

The extra sum included in the buying price of items to account for operational expenses and profit, which establishes the sales price.

Job-Order Costing

A cost accounting system that assigns costs to specific jobs or batches, used in industries where products are distinctly different.

Predetermined Overhead Rate

An estimated overhead rate used to apply manufacturing overhead to products, calculated before the accounting period begins.