An Instrument Stating on Its Face, "Pay to Robert Stevens

question 23

Multiple Choice

An instrument stating on its face, "Pay to Robert Stevens or bearer" is

• A) nonnegotiable.
• B) negotiable.
• C) an order instrument.
• D) a draft.

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Definitions:

Variable Cost

Costs that change in proportion to the level of output or activity of a business.

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent or salaries.

Marginal Costs

Refers to the cost added by producing one extra item of a product, emphasizing its role in decision making regarding production levels.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.