Martin Shores, Inc

question 262

Multiple Choice

Martin Shores, Inc. is facing financial difficulties and has ceased production. Management realizes that the firm will still incur $15,000 of costs each month until such time as the firm is sold. This
$15,000 represents the _____ costs of the firm's operations.

• A) Total.
• B) Fixed.
• C) Variable.
• D) Net.
• E) Contribution.

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Definitions:

Lemon-Law

Consumer protection laws that provide a remedy for purchasers of cars and other consumer goods that fail to meet standards of quality and performance.

Standards of Quality

Established benchmarks that define the specific requirements, specifications, and guidelines to ensure that materials, products, processes, and services are fit for their purpose.

Remedy

A legal means to enforce a right or redress a wrong, such as damages, injunction, or specific performance.

Implied Warranty

A legal assurance, not expressly stated, that a product or service will meet certain quality and performance standards.