To Be Effective,notice of Revocation of an Offer

question 55

Multiple Choice

To be effective,notice of revocation of an offer:

• A) must be communicated directly to the offeree before the offeree has accepted.
• B) may be communicated indirectly to the offeree through a third person.
• C) must be dispatched before the offeree accepts;when notice actually reaches the offeree is not important.
• D) is not addressed in the Restatement.

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Definitions:

Standard Direct Materials Costs

The budgeted or standard cost of the raw materials required to produce a unit of product.

Standard Price

A predetermined cost that companies use to budget and evaluate the performance of actual costs.

Standard Quantity

The established amount of materials or inputs expected to be used in the production of a good or service.

Total Manufacturing Cost Variance

The difference between total standard costs and total actual costs for the units produced.