Which of the Following Statements Is (Are) True

question 127

Multiple Choice

Which of the following statements is (are) true?
(1) The term full cost refers to the cost of manufacturing and selling a unit of product and includes both fixed and variable costs.
(2) The fixed cost per unit is considered constant despite changes in volume of activity within the relevant range.

• A) Only (1) is true.
• B) Only (2) is true.
• C) Both of these are true.
• D) None of these are true.

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Definitions:

Promissory Note

A written, legally binding document in which one party promises to pay another a definite sum of money either on demand or at a specified future date.

Certificate Of Deposit

A Certificate of Deposit (CD) is a financial product offered by banks and credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.

Multiple Endorsements

Refers to the practice in banking and finance where a document, such as a check, is signed over to another party multiple times.

Liable

Being legally responsible for something, typically referring to obligations in law.