Generally, When an Indorsement Is Unauthorized, the Burden of Loss

question 58

True/False

Generally, when an indorsement is unauthorized, the burden of loss falls on the first party to take the instrument.

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Definitions:

Direct Labor

Direct labor relates to the work of employees who are directly involved in the production of goods or services.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as rent, property taxes, and insurance.

Variances

The differences between planned or expected financial outcomes and the actual financial outcomes.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.