Excel Investments, Inc

question 42

Multiple Choice

Excel Investments, Inc., and First State Bank are secured parties with security interests in property owned by GR8 Manufacturing Corporation. Priority between these security interests is generally determined by

• A) the amount of the claim.
• B) the custom in the trade.
• C) the time of perfection.
• D) the time the security agreement was signed.

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Definitions:

Management

The process of dealing with or controlling things or people, often within a business or organization.

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold.

Variable Costing

An accounting method that considers only variable costs in calculating the cost of goods sold and determining profitability.

Manufacturing Margin

The difference between the sales income generated by manufactured goods and the cost of goods sold.