Neef Corporation Has Provided the Following Data for Its Two

question 122

Multiple Choice

Neef Corporation has provided the following data for its two most recent years of operation:

-Which of the following statements is true for Year 2?

• A) The amount of fixed manufacturing overhead released from inventories is $12,000
• B) The amount of fixed manufacturing overhead released from inventories is $654,000
• C) The amount of fixed manufacturing overhead deferred in inventories is $12,000
• D) The amount of fixed manufacturing overhead deferred in inventories is $654,000

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Definitions:

Principal

The primary party to a transaction or contract who has authorized another (agent) to act on their behalf or the main amount of debt before interest.

Constructive Notice

A legal fiction that signifies a person or entity should have known, as a reasonable person would have, even if they have no actual knowledge of it.

Apparent Authority

A principle that allows a third party to assume an agent has the authorization to act on behalf of a principal, even if such authority has not been granted.

Constructive Notice

A legal concept assuming that a person or entity is aware of facts by virtue of the information being publicly available, regardless of whether they have actually reviewed the information.