Kay Plans to Retire in Two Years and Wishes to Liquidate

question 60

Multiple Choice

Kay plans to retire in two years and wishes to liquidate her account at that time. Kay has a ________ constraint.

• A)resource
• B)horizon
• C)liquidity
• D)tax
• E)special circumstances

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Definitions:

Customer Specifications

Detailed requirements provided by a customer regarding how a product or service should perform or be designed.

Job Order Cost System

A type of cost accounting system that provides for a separate record of the cost of each quantity of product (job) that is manufactured.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished goods.

Direct Materials

Raw materials that can be directly associated with the production of goods or services and are considered a variable cost.