Before the Guarantor of a Debt Can Be Required to Answer

question 46

True/False

Before the guarantor of a debt can be required to answer for the debt of a debtor, the debtor must have defaulted on the underlying obligation.

---

Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially finished goods in terms of fully finished goods.

Fabrication Department

A specialized sector within a manufacturing facility where goods are constructed or assembled.

Conversion Costs

The combination of direct labor and manufacturing overhead costs that are incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory costing method that averages the cost of inventory available for sale with the cost of goods sold to determine the cost of ending inventory and cost of goods sold.