Regarding the Two Parties to a Note,the

question 8

Multiple Choice

Regarding the two parties to a note,the:

• A)creditor has a note receivable and the debtor has a note payable.
• B)creditor has a note payable and the debtor has a note receivable.
• C)creditor is also called the maker of the note.
• D)debtor is also called the lender.

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Definitions:

Overhead Absorption

A method of applying a portion of a company’s indirect costs, such as electricity or rent, to individual units of production.

Machine Hour

A measure of the amount of time a machine is operated, used as a basis for allocating machine-related costs to products.

Full Cost

The sum of all costs incurred in the production of a product or service.

Fixed Overhead

This refers to the consistent, non-variable costs incurred by a business, regardless of its level of production or sales volumes.