Prorations of Items in a Real Estate Closing Are Made

question 62

True/False

Prorations of items in a real estate closing are made usually as of the date of the signing of the contract.

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Definitions:

Sales Mix

The composition of different products or services that a company sells, impacting profitability and overall sales.

Fixed Expenses

Recurring costs that remain relatively constant regardless of business activity levels, including property leases and insurance premiums.

High-low Method

An approach to estimating the fixed and variable components of costs by analyzing the highest and lowest levels of activity.

Variable Cost

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.