Which of the Following Is Not a Reason for the Parties

question 32

Multiple Choice

Which of the following is not a reason for the parties to reduce their contract into writing?

• A) It is better to trust a written record.
• B) The parties will be more civil to each other.
• C) Human memory is fallible.
• D) It is good business practice for the provisions of a contract to be certain.
• E) Disputes are avoided by keeping accurate records.

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Definitions:

Unfavorable Direct Materials Price Variance

A financial metric indicating that the actual cost of direct materials was higher than the planned or standard cost, leading to a decrease in profitability.

Standard Price

Standard price is a pre-determined cost assigned to materials, labor, and overheads to measure variances in budgeting and accounting.

Direct Materials

Raw materials directly used in the production of goods, easily traceable to the final product.

Theoretical Standard

A benchmark for the most efficient level of operating performance or cost control, assuming perfect conditions.