Kent and Lucy Enter into a Contract for the Sale

question 64

Multiple Choice

Kent and Lucy enter into a contract for the sale of Mountain Valley Ranch. To be enforceable, this contract must be

• A) substantiated by reliable, external evidence.
• B) signed in a sufficient manner by both parties.
• C) in writing or evidenced by a written memorandum.
• D) all of the choices.

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Definitions:

Activity Cost Pools

A method in cost accounting used to group all related costs associated with specific activities.

Activity-Based Costing

A pricing method that allocates expenses to goods or services according to the resources they use.

Machine-Hours

A measure of production time, indicating the total hours that machines are operational within a set period.

Overhead Cost

Expenses related to the day-to-day operations of a business that aren't directly tied to the production of goods or services.