A Principal Is Not Bound to Contracts Made by an Apparent

question 41

True/False

A principal is not bound to contracts made by an apparent agency.

---

Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales.

Mixed Cost

Mixed Cost refers to expenses that have both fixed and variable components, changing in total with activity level but also containing a static portion that remains constant.

Variable Cost

Costs that change in proportion to the level of goods or services a company produces.

Fixed Cost

Costs that do not vary with the level of production or sales, remaining constant even when the volume of output changes.