Which of the Following Is True Regarding Actions a Buyer

question 67

Multiple Choice

Which of the following is true regarding actions a buyer may take if a seller does not provide goods that were described in the contract?

• A)If a seller does not provide goods as described in a contract,the buyer may reject the goods subject to the seller's curing the deficiency in the goods,but the buyer may not accept the nonconforming goods as is or reject the goods if no cure is possible.
• B)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is and sue for damages,but the buyer may not reject the goods subject to the seller's curing the deficiency in the goods or reject the goods if no cure is possible.
• C)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is,or the buyer may reject the goods subject to the seller's curing the deficiency in the goods;but the buyer may not simply reject the goods.
• D)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is and sue for damages or the buyer may reject the goods,but the buyer may not reject the goods subject to the seller's curing the deficiency.
• E)If a seller does not provide goods as described in a contract,the buyer may accept the nonconforming goods as is,reject the goods subject to the seller's curing the deficiency in the goods,or reject the goods if no cure is possible.

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Definitions:

Overhead Application Rate

A method for assigning indirect costs to produced goods based on a formula, often related to the level of production activity.

Direct Labor Costs

The total cost of workforce directly involved in the production of goods or services, typically including wages and salaries of manufacturing or production employees.

Work in Process Inventory

Items in a manufacturing process that are not yet completed products; it includes raw materials, labor, and overhead costs incurred up to that point.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor expenses. It includes costs like utilities and maintenance of machinery.