A Contract Between a Retailer and a Supplier Provides That

question 60

Multiple Choice

A contract between a retailer and a supplier provides that payment is due upon delivery of goods by the supplier. The retailer's duty to pay and the supplier's duty to deliver constitutes ________.

• A) an implied condition
• B) a condition precedent
• C) a condition subsequent
• D) concurrent conditions

---

Definitions:

Financial Reporting

The communication of financial information and data about a company's operations, financial position, and cash flows to external users.

Manufacturing Overhead Cost

Indirect factory-related costs that are incurred when producing a product, such as utilities, depreciation, and maintenance.

Variable Cost Per Unit

The cost, which varies with the level of output, of producing one unit of a product.

Variable Cost

Payments that adjust in direct relation to the amount of production or sales, including raw materials and direct labor.