What Is the Key Difference Between an Agreement and a Contract

question 73

Multiple Choice

What is the key difference between an agreement and a contract?

• A) A contract is always enforceable in the court of law, while an acceptance may or may not be.
• B) A contract can only be between two individuals, while an acceptance can have two or more people involved.
• C) A contract requires mutual assent from all parties, while an acceptance only requires a majority approval.
• D) A contract need not be legally binding, while an agreement must be legally binding.

Comprehend information useful for evaluating the profitability or cost-effectiveness of departmental activities.

Allocate indirect expenses across departments based on various drivers (floor space, ad spots, sales).

Understand responsibility accounting and the creation of performance reports for department managers.

Apply cost allocation methods in the context of educational institution administrative, maintenance, and utilities expenses.

---

Definitions:

Sample

A group of people or objects chosen from a broader group to conduct statistical studies.

Population

The entire pool from which a statistical sample is drawn and is the total set of observations that can be made.

Data Acquisition Error

An error that occurs during the process of collecting or obtaining data, which can lead to inaccuracies in the final data set.

Experimental Error

Experimental Error refers to the deviation of observed values from the true value, caused by factors not accounted for in an experiment.