When Delivery Is to Be Made Without Moving the Goods

question 60

Multiple Choice

When delivery is to be made without moving the goods, unless otherwise agreed, title passes:

• A) when the goods are identified if they were not identified at the time of contracting.
• B) at the time and place of contracting under all circumstances.
• C) at the time the seller completes performance.
• D) when a document of title is created if a negotiable document of title is involved.

Recognize the categorization of costs such as direct materials, direct labor, and manufacturing overhead.

Understand how manufacturing overhead is applied to production and its effect on inventory accounts.

Comprehend the process of moving costs from Work in Process to Finished Goods and then to Cost of Goods Sold.

Understand the implications of a credit balance in the Manufacturing Overhead account.

---

Definitions:

Exculpatory Clause

A contract provision that relieves one party from liability for wrongdoing or negligence.

Covenant Not to Compete

A legal agreement in which one party agrees not to enter into or start a similar profession or trade in competition against another party.

Tort of Defamation

A civil wrong that involves making false statements about someone that harm their reputation.

Intoxicated

A state of being affected by substances such as alcohol or drugs, which impair cognitive functions and physical abilities, leading to reduced control and judgment.