Sonny Bought a Computer from the Bad Guys on a Conditional

question 17

Multiple Choice

Sonny bought a computer from The Bad Guys on a conditional sales contract. Two months later Sonny sold the computer to Fred without mentioning it was not paid for. Can The Bad Guys recover the computer from Fred?

• A) Yes, if the security device is properly registered with the province.
• B) Yes, directly from Fred, or they can force Sonny to retrieve the computer.
• C) Yes, but it would be easier for them to get the money from Sonny.
• D) No, since this is a consumer transaction where title is guaranteed.
• E) No, provided Fred is an innocent third party.

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Definitions:

Process Costing

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Sequential Manufacturing System

A sequential manufacturing system is a production process where operations are carried out in a specific, consecutive order to complete the manufacturing of a product.

Production Report

A document detailing the output of a manufacturing process, including quantities produced, defect rates, and efficiency.