Fact Pattern 18-B1

question 33

Multiple Choice

Fact Pattern 18-B1
A enters into a contract to buy 132 acres from B to subdivide and sell in quarter-acre lots for C Acres, a residential development.
-Refer to Fact Pattern 18-B1. If A breaches the contract, B's remedy would most likely be

• A) a certain ratio of the amount that A has in liquid funds.
• B) a percentage of A's unrealized profit.
• C) the difference between the land's contract and market prices.
• D) specific performance.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation approach where goods first produced or purchased are the first to be sold, useful in managing inventory and cost of goods sold.

Equivalent Units

A concept in accounting used to apportion costs to partially completed goods, converting them into the number of finished goods units.

Activity-based Management

A management approach focusing on managing activities as a way to improve customer value and profit by improving the efficiency and effectiveness of those activities.

Waste

Any unusable materials or substances involved in a process which are produced as a by-product and often require disposal.