Select the Appropriate Classification of Each of the Costs Listed

question 198

Multiple Choice

Select the appropriate classification of each of the costs listed below.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Cost of hourly assembly-line workers, with respect to number of hours worked

• A)Variable cost
• B)Fixed cost

Learn the prioritization rules for competing security interests in the same collateral.

Understand the requirements and processes for creating an enforceable security interest.

Recognize the importance and process of filing a financing statement for perfecting a security interest.

Understand the consequences of not perfecting a security interest.

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Definitions:

Chapter 7

A provision under the U.S. Bankruptcy Code that allows individuals or businesses to liquidate their assets to pay off creditors.

Reduces to Money

The process of converting assets or damages into their monetary value.

Secured Creditor

A lender that has the right to claim specific assets of the borrower as collateral in case of default.

Order of Priority

The sequence or ranking used to determine the importance or urgency of different items, claims, or needs.