Mega Has Just Shipped One of Its Products to Compucell

question 128

Multiple Choice

Mega has just shipped one of its products to Compucell on faith that they will pay the invoice. This is a(n)

• A) trade acceptance.
• B) revolving credit agreement.
• C) line of credit.
• D) open-book credit.
• E) promissory note.

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Definitions:

Unit Product Cost

The total cost (both direct and indirect) associated with producing a single unit of product.

Break-even

The point at which total costs and total revenue are equal, meaning no net loss or gain is incurred by the business.

Sales Dollars

Represents the total revenue generated from the sale of goods or services before any expenses are subtracted.

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of output within a certain range.