A Guarantor Is a Person Who

question 39

Multiple Choice

A guarantor is a person who:

• A) joins with the person who is primarily liable in promising to make the payment or to perform the duty.
• B) does not join in making a promise, but makes a separate promise and agrees to be liable on the happening of a certain event.
• C) is paid for serving as a surety, such as a bonding company.
• D) acts as a surety without compensation, such as a friend who cosigns a note as a favor.

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and manufacturing overhead) associated with a single unit of product.

Unit Product Cost

The cost incurred to produce a single unit of product, inclusive of direct materials, direct labor, and manufacturing overhead.

Job T687

This could refer to a specific task, project, or product order within a job costing system, identified by the number T687.

Selling Price

The price at which a product or service is offered for sale to customers.