Paying a Supplier in Toronto with a Cheque Drawn on a Bank

question 48

Multiple Choice

Paying a supplier in Toronto with a cheque drawn on a bank in New Brunswick is an example of:

• A)Cheque kiting
• B)Remote wire transfer
• C)Concentration banking
• D)Remote disbursement

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Definitions:

Fixed Overhead

Fixed expenditures that are unaffected by production or sales volume, like rental fees, employee salaries, and insurance policies.

Volume Variance

A measure used to evaluate the difference between the expected and actual production volumes.

Predetermined Overhead Rate

A rate calculated before a period begins, based on estimated overhead costs and activity levels, for assigning manufacturing overhead to products.

Variable Component

A portion of costs that varies directly with the level of production or operation activity.