When Consigned Goods Are Sold by a Factor

question 41

Multiple Choice

When consigned goods are sold by a factor:

• A) title passes when the consignor approves the sale.
• B) title passes even if the goods have been stolen,provided the factor is ignorant of this fact.
• C) the sale passes the title of the owner to the buyer.
• D) strict compliance with the Federal Factors Act is required to pass title.

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Definitions:

Standard Cost

Predetermined costs for manufacturing or service processes, used as benchmarks for performance evaluation.

Variance Investigation

The process of examining the reasons behind differences between budgeted and actual figures in finance and accounting.

Direct Material Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valued at the standard cost.

Cost Standards

Benchmarks or predetermined costs relating to the production of goods or services, serving as a yardstick for measuring actual performance against expected costs.