Under the Terms of a Sight Draft, the Buyer's Bank

question 58

Multiple Choice

Under the terms of a sight draft, the buyer's bank:

• A)Is instructed to make immediate payment
• B)Treats the invoice like a postdated cheques
• C)Forwards the acceptance to the seller until due
• D)Treats the purchase as a conditional sale

---

Definitions:

Total Cost

The total economic cost of production, including both fixed and variable costs.

Average Total Cost

Total cost divided by the number of units produced, representing the cost per unit of output.

Average Total Costs

The sum of all the production costs divided by the quantity of output produced, representing the per-unit cost of production.

Average Variable Costs

Costs that vary with the level of output, divided by the quantity of output produced, indicating the variable cost per unit.