In a __________, No Sale Takes Place (Meaning There Is

question 44

Multiple Choice

In a __________, no sale takes place (meaning there is no transfer of title) until the buyer accepts the goods.

• A) conditional sale
• B) contingency sale
• C) sale or return
• D) sale on approval

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Definitions:

Direct Labor

The work of employees that is directly associated with the production of goods or services.

Factory Overhead

Encompasses all indirect costs involved in the manufacturing process, such as utilities, maintenance, and salaries of non-direct labor.

FIFO Method

"First In, First Out," an inventory valuation method that assumes that the first items placed in inventory are the first sold, affecting the cost of goods sold and inventory valuation.

Direct Materials

Basic substances that can be directly linked to the manufacturing of particular products or services.