Which of the Following Statements Best Defines a Trigger Point

question 58

Multiple Choice

Which of the following statements best defines a trigger point in a sequential-tracking costing system?

• A) the inventory level at which a new purchase order is generated
• B) the point at which the sum of annual relevant stockout and ordering costs is minimal
• C) the production level at which the costing system becomes incapable of tracking the production costs
• D) a stage in the production cycle at which journal entries are made in the accounting system

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Definitions:

Negotiable Note

A financial instrument containing a promise to pay a certain amount of money, either on demand or at a future date, which is transferable by endorsement.

Holder In Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith and for value, thereby granting certain rights in excess of the original payee.

Notification

The act of informing someone about something, typically in a formal or official manner.

Stolen Check

A check that has been unlawfully taken from its rightful owner leading to potential unauthorized use or fraud.