Megan,an Agent for a Department Store,orders One Hundred Dresses from Sal's

question 6

Multiple Choice

Megan,an agent for a department store,orders one hundred dresses from Sal's Clothing Shop for the Spring Blossom Sale.There is no specific agreement in the sale contract indicating when title will pass to the department store.The title will pass to the department store when

• A)Megan signs the contract.
• B)Megan and the Sal's Clothing Shop agent sign the contract.
• C)Sal's Clothing Shop physically delivers the dresses to the department store.
• D)Megan pays Sal's Clothing Shop for the dresses.

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Definitions:

Direct Materials

Materials that can be directly attributed to the production of specific goods or services and are an essential component of finished products.

Fixed Overhead

Indirect costs of production that remain relatively constant regardless of the level of output, such as rent, salaries, and insurance.

Variable Overhead

Costs that fluctuate with the level of production output, such as utilities or raw materials.

Direct Labor

The wages paid to employees who are directly involved in producing goods or providing services.