Which of the Following Is Not True Regarding the Seller's

question 57

Multiple Choice

Which of the following is not true regarding the seller's or lessor's right to cancel the contract?

• A) The seller or lessor may cancel a sales contract if the buyer or lessee breaches the contract by rejecting or revoking acceptance of the goods.
• B) The seller or lessor may cancel a sales contract if the buyer or lessee breaches the contract by failing to pay for the goods, or by repudiating all or any part of the contract.
• C) The cancellation may refer only to the affected goods if the breach is material.
• D) The seller or lessor who rightfully cancels a sales or lease contract by notifying the buyer or lessee is discharged of any further obligations under the contract.
• E) When cancellation occurs, the buyer's or lessee's duties are not discharged.

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Definitions:

Activity-based Costing

A costing method that identifies activities in a company and assigns the cost of each activity to all products and services according to the actual consumption by each.

Shipping and Handling Activity

The process of preparing, packaging, and delivering goods to a destination.

Activity Rate

A metric used to measure the efficiency or productivity of a company's operations, often tied to specific actions or tasks.

Departmental Factory Overhead Rate

A rate used to allocate indirect manufacturing costs to different departments within a factory.