Exhibit 19-2 the Following Information Relates to Bergen Corporation

question 61

Multiple Choice

Exhibit 19-2 The following information relates to Bergen Corporation:

-Refer to Exhibit 19-2. Based on the information above, the materials quantity variance is:

• A) $500 favorable
• B) $500 unfavorable
• C) $1,500 favorable
• D) $1,500 unfavorable

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Definitions:

Negotiable

Capable of being transferred or modified through discussion or upon reaching an agreement.

Oral Promise

An oral promise is a commitment or assurance given verbally rather than in written form, which may or may not be legally enforceable depending on the context.

Negotiable

A characteristic of a financial instrument (like a check or bill of lading) that allows it to be transferred from one party to another as a form of payment or investment.

Contract Formation

The process by which parties agree to terms that are legally binding and enforceable.