A Two Party Instrument Stating on Its Face "Pay to Tom

question 15

Multiple Choice

A two party instrument stating on its face "Pay to Tom Smith" is:

• A)A promissory note with Tom Smith as the payee.
• B)A quitclaim deed with Tom Smith a grantor
• C)a mortgage with the bank as the beneficiary
• D)a deed of trust with Smith as the beneficiary

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Definitions:

Actual Overhead Costs

The real costs that a company incurs for its indirect materials, indirect labor, and other overhead expenses.

Direct Labour Cost

The wages and benefits paid to workers who are directly involved in the manufacturing process.

Manufacturing Overhead Applied

The allocation of overhead costs to the goods produced, based on a predetermined overhead rate.

Job-order Costing

A cost accounting system that accumulates manufacturing costs separately for each job.