Bob Took a Check Written by Jack to Jack's Bank

question 51

Multiple Choice

Bob took a check written by Jack to Jack's bank to be certified. The bank stamped "Certified" on it and gave it back to Bob. What consequence?

• A) Bob can only demand the money from Jack.
• B) Bob can only demand the money from the bank.
• C) The bank would have to pay if Jack doesn't.
• D) Bob would have to pay if the bank doesn't.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the budgeted or standard cost, indicating how effectively a company controls its material costs.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used for budgeting and cost control purposes.

Raw Materials

The unprocessed natural materials or substances used in the initial stages of production or manufacturing.

Cost System

A method used to allocate costs to products, services, projects, or departments to facilitate financial analysis, budgeting, and managerial decision-making.