Unless Properly Disclosed, a Warranty That Is Implied That Sold

question 45

Multiple Choice

Unless properly disclosed, a warranty that is implied that sold or leased goods are fit for the ordinary purpose for which they are sold or leased, as well as other assurances is known as ________.

• A)implied volatility
• B)implied cause of action
• C)implied assertion
• D)implied warranty of merchantability

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Definitions:

Overapplied

Refers to a condition where the amount of costs allocated or applied to goods or services exceeds the actual costs incurred.

Manufacturing Overhead

All manufacturing costs that are not directly tied to a specific product or production activity, including utilities, rent, and salaries for supervisors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Direct Materials Costs

The cost of raw materials directly used in the production of goods, which can be easily traced back to the finished product.