Excel Vehicles, Inc

question 46

Multiple Choice

Excel Vehicles, Inc., makes and sells automobiles to auto dealers, including Fine Auto Sales. Fine sells the cars to consumers and businesses.
-Refer to Fact Pattern 24-1.Holly,a professional driver,buys an Excel from Fine to drive in a Grand Prix race.Holly's Excel is

• A)a consumer good.
• B)an accession.
• C)equipment.
• D)inventory.

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Definitions:

Physical Units Method

An approach to allocating joint costs based on the number of physical units produced at a certain stage in manufacturing.

Market Values

The current price at which an asset or service can be bought or sold in the marketplace.

Indirectly Related

Refers to items or factors that have a secondary or less direct connection or relationship.

Facility-level Costs

Costs that are incurred to maintain and operate a physical plant or facility, not directly tied to any specific product or service.