A Promise of Future Payment Issued by a Firm Guaranteed

question 89

Multiple Choice

A promise of future payment issued by a firm guaranteed by a bank is called a(n)

• A) bill of exchange.
• B) commercial letter of credit.
• C) banker's acceptance.
• D) documentary draft.

Understand the importance of market-based pricing in setting selling prices.

Compute and analyze contribution margin in decision-making scenarios.

Understand the principle of target costing and its applications.

Differentiate between various cost concepts including product cost concept, total cost concept, and variable cost concept.

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Definitions:

Autokinetic Effect

A visual phenomenon where a stationary point of light in a dark environment appears to move because of small involuntary eye movements.

Normative Influence

The impact of the norms of a group on an individual's behavior, leading them to conform in order to be accepted or liked by the group.

Informational Influence

A social influence process where an individual conforms to the opinions or behaviors of others because they are seen as a source of accurate information and used to guide one’s own beliefs or actions.

Social Influence

The change in behavior that one person causes in another, consciously or unconsciously, due to the way the influenced person perceives themselves in relation to the influencer, other people, and society.