Carlos Borrowed $100 from His Friend, Juanita

question 34

Multiple Choice

Carlos borrowed $100 from his friend, Juanita. Carlos signed a handwritten note stating, "I promise to pay $100 to the order of Juanita." Under these circumstances, the note is _____.

• A) negotiable because it is a simple contract
• B) not negotiable because it does not acknowledge the reason for the debt
• C) not negotiable because it does not state the time payment is due
• D) negotiable because it meets all the requirements for negotiability

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Definitions:

Direct Labor

Costs attributed to the work done by employees who are directly involved in the production of goods or services.

Conversion Cost

The combined expenses of direct labor and manufacturing overhead, representing the costs to convert raw materials into finished goods.

Product Cost

The total cost associated with manufacturing a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

The raw materials that can be directly traced to the manufacturing process of a product.