Possessory Liens Give the Lienholder the Right to Keep Possession

question 2

Multiple Choice

Possessory liens give the lienholder the right to keep possession of the debtor's property:

• A) for a reasonable period of time after the debt has been paid.
• B) until the debtor regains possession by fraud or other illegal act.
• C) until the reasonable charges for the service have been paid.
• D) even if possession of the goods has not been entrusted to the lienholder.

---

Definitions:

Overhead Rate

A financial ratio that allocates overhead costs to products or services based on a predetermined measure, often used to calculate total production costs.

Cost Hierarchy

A system that categorizes costs based on their direct traceability to production activities, often utilized in activity-based costing.

Activity-based Costing

A costing method that assigns overhead and indirect costs to specific activities based on their use of resources, improving accuracy in pricing and product management.

Direct Labor

The cost of wages for workers directly involved in the manufacturing or production of goods.