When a Person Undertakes an Obligation That Is Not Conditioned

question 61

Multiple Choice

When a person undertakes an obligation that is not conditioned on the default of another person,and the debt is his own rather than that of another person,his obligation is said to be ________,not collateral.

• A)secondary
• B)original
• C)implied
• D)express

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Definitions:

Overapplied Manufacturing Overhead

A situation where the actual manufacturing overhead costs are less than the overhead assigned to products.

Underapplied Manufacturing Overhead

The condition where the estimated manufacturing overhead costs are less than the actual overhead incurred, resulting in a shortfall that needs to be adjusted.

Finished Goods

Items that are ready after production but still await sale or delivery to consumers.

Underapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are less than the actual overhead costs.