If Applicable,course of Dealing Will

question 14

Multiple Choice

If applicable,course of dealing will

• A)limit the buyer's right to reject for relatively routine defects.
• B)allow the seller to replace defective goods with conforming goods if time permits.
• C)permit a buyer to reject accepted goods if they substantially impair its value.
• D)allow either the buyer or the seller to void a contract.

---

Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale in real time.

Cost Of Goods Sold

The total expenses directly related to the production of goods sold by a company, including material and labor costs.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer assumes responsibility for the goods and the cost of transport once the goods leave the seller's premises.