Shane Issues a Check Drawn on Thrifty Bank to Farm

question 71

Multiple Choice

Shane issues a check drawn on Thrifty Bank to Farm Supply Store to pay for a rototiller. Later, Shane discovers a defect in the device and orders Thrifty to stop payment on the check. Shane does not renew the order, and the bank clears the check eight months later. The bank​

• A) ​must recredit Shane's account.
• B) ​must obtain funds from Farm Supply to cover the check.
• C) ​must substitute acceptable goods.
• D) ​need not recredit Shane's account.

Grasp the concepts of low conformers and strategies to effectively work with them.

Understand the various conflict management styles and the contexts in which they are most effectively used.

Identify the steps necessary for analyzing conflicts effectively.

Recognize the importance and application of a collaborative approach for achieving win-win solutions in conflicts.

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Definitions:

Direct Labor Cost

The expense associated with employees who physically convert raw materials into the company's products; considered a variable cost.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Variable Costing

An accounting method that only considers variable costs in determining the cost of goods sold and in calculating contribution margin.

Unit Product Cost

The total expense incurred to produce, store, and sell one unit of a product, including direct materials, direct labor, and manufacturing overhead.