Which of the Following Is True Regarding a Situation Where

question 31

Multiple Choice

Which of the following is true regarding a situation where an agent exceeds the scope of his or her authority in entering into a contract?

• A) The agent would never be held liable to the third party.
• B) The agent would always be held liable to the third party.
• C) The principal would always be held liable to the third party.
• D) The principal would never be held liable to the third party.
• E) The principal is not liable on the contract unless the principal ratifies it.

Analyze how inventory levels affect financial statements under variable and absorption costing.

Recognize the importance of capacity utilization in determining operating income and inventory valuation.

Understand the concept of manufacturing margin and contribution margin in variable costing.

Evaluate the implications of costing methods on performance evaluation and decision-making.

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Definitions:

Correcting

The act of identifying and rectifying errors or faults.

Organizational Citizenship

Behaviors by employees that are not part of their formal job requirements but help to enhance organizational functioning.

Cooperation

The act of working together towards a common goal, often involving the pooling of resources or effort.

Helpfulness

The quality of providing useful assistance or support to others, often contributing positively to a goal or task.