Grandpa Owns a Farm

question 10

Multiple Choice

Grandpa owns a farm.In a signed writing,Grandpa gave Sue the irrevocable right to use a road on his farm so that Sue could more easily reach her own property.What kind of interest in land did Grandpa give to Sue?

• A)Easement
• B)Profit
• C)License
• D)Prescription

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Definitions:

Inventory Levels

The quantity of goods and materials on hand at any given time in a company.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Variable Costing

A cost system that excludes fixed costs from product costs and writes off all fixed costs against income in the year that the costs are incurred. Also called direct costing.

Step-fixed Costs

Expenses that remain constant for a set level of production or output, but can change when a certain threshold is crossed.