Rite Hardware Store Orders 100 Cases of Galvanized Nails from Safe-T

question 40

Multiple Choice

Rite Hardware Store orders 100 cases of galvanized nails from Safe-T Fastener Company's 1,000-case lot.Safe-T separates 100 cases from the lot.Title and risk of loss

• A)remain with Safe-T until Rite acknowledges tender of delivery.
• B)remain with Safe-T until Rite accepts 100 cases.
• C)shift to Rite after it accepts the nails and inspects them for defects.
• D)shift to Rite when Safe-T separates the cases.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of goods.

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as raw materials and direct labor.

Direct Labour Hours

The overall work hours of staff directly engaged in creating products.

Variable Manufacturing Overhead

The portion of variable overhead that is directly associated with the manufacturing process, such as indirect materials or supplies.