Which of the Following Is True About the Ratification of a Contract

question 66

Multiple Choice

Which of the following is true about the ratification of a contract by a minor?

• A)A minor can only ratify a contract after reaching the age of majority.
• B)A minor cannot ratify a contract that falls under the necessaries of life doctrine.
• C)A minor can ratify a contract during the period of minority if he or she so wishes.
• D)A minor can ratify a contract under the guidance of a parent or legal guardian.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead expected for the actual production level.

Variable Manufacturing Overhead

Costs of manufacturing that vary with the level of production output, such as utilities and some wages.

Materials Price Variance

The variance between the real expense of materials and their anticipated (or standard) cost.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products or job orders.