Fact Pattern 24-2A (Questions A3-A4 Apply)

question 17

Multiple Choice

Fact Pattern 24-2A (Questions A3-A4 apply)
Commodity Sales Corporation and Resource Purchasing Company enter a contract for a sale of unprocessed silver.Commodity Sales draws a draft unconditionally ordering Resource Purchasing to pay $50,000 to Commodity Sales's order in sixty days.Resource Purchasing signs and dates the draft.
-Refer to Fact Pattern 24-2A.On this instrument,Commodity Sales is

• A)the banker.
• B)the drawer.
• C)the maker.
• D)the trader.

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Definitions:

Cost Variance

The difference between the budgeted or estimated cost of a project and the actual cost incurred.

Cost Performance Index

A measure in project management that calculates the efficiency of budget utilization by dividing the earned value by the actual costs.

Schedule Variance

The difference between the planned and the actual project progress, indicating whether a project is ahead or behind schedule.

Resource Flow Variance

Variations in the rate, timing, and quality of resources being supplied to or produced by a process.