The Drawee Does Not Have Liability on the Instrument Until

question 23

Multiple Choice

The drawee does not have liability on the instrument until it ________ the instrument.

• A)transfers
• B)signs
• C)negotiates
• D)makes

---

Definitions:

Manufacturing Overhead

All the indirect costs associated with manufacturing a product, such as utilities, maintenance, and factory equipment depreciation, not directly traceable to a specific product.

Activity Cost Drivers

Refers to factors that influence or contribute to the expenses associated with different business activities.

ABC Costing System

Activity-Based Costing is an accounting method that assigns costs to products or services based on the activities that go into producing them.

Plantwide Overhead Allocation

A method of distributing overhead costs to all products or services based on a single cost driver across the entire plant or factory.