Which of the Following Is True for an Auction Without

question 72

Multiple Choice

Which of the following is true for an auction without reserve?

• A) The bidder is considered the offeror.
• B) The seller need not accept the highest bid.
• C) The goods on sale cannot be withdrawn.
• D) The auctioneer is not allowed to set a minimum bid.

---

Definitions:

Period Cost

Expenses that are not directly tied to the production of goods or services and are expensed in the period they are incurred.

Target Net Income

The desired profit a company aims to achieve for a period, used in budgeting and planning processes.

Required Sales

The amount of sales needed to achieve a specific financial goal, such as breaking even or reaching a profit target.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs are subtracted, available to cover fixed costs and provide profit.