Under Chapter 7 of the U.S.bankruptcy Code

question 62

Multiple Choice

Under Chapter 7 of the U.S.bankruptcy code,

• A) All debts are forgiven.
• B) Alimony and child support debts are released.
• C) Certain assets receive some protection.
• D) Taxes and fines no longer need to be paid.
• E) Debt arising from driving while intoxicated is forgiven.

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Definitions:

Period Costs

Expenses that are not directly tied to production, such as administrative and selling expenses, which are expensed in the period they are incurred.

Variable Costs

Expenses that change directly in proportion to changes in business activity levels or volumes.

Contribution Margin

The sum of money left over after variable costs are subtracted, which is available to pay for fixed costs and add to profit.

Incremental Manufacturing Cost

The additional cost associated with producing one more unit of a product.