Which of the Following Is True About Passage of Title

question 15

Multiple Choice

Which of the following is true about passage of title?

• A) It occurs at the time and place goods are shipped in a shipment contract,and upon reaching the buyer's place of business or other specified location in a destination contract.
• B) It always occurs when the goods leave the hands of the seller.
• C) It does not occur until the buyer indicates acceptance of the goods.
• D) It always passes at the same time that risk of loss passes.
• E) It occurs at the time payment is made by the buyer.

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Definitions:

Manufacturing Overhead Budget

A financial plan that estimates the costs of indirect materials, labor, and other expenses needed to operate a manufacturing facility.

Production Units

A measure of output from a production process, with one unit representing an item or a defined amount of service produced.

Unit Sales

The total number of individual items or units that a company has sold within a particular period.

Required Units

The quantity of production or inventory that a business must achieve to meet its operational goals or customer demand.