Under the Parol Evidence Rule,which of the Following Items Could

question 4

Multiple Choice

Under the parol evidence rule,which of the following items could be used to interpret,explain,or otherwise affect a complete and final written contract?

• A) evidence of a prior oral agreement
• B) evidence of a subsequent oral agreement
• C) evidence to explain an unclear term or phrase
• D) A and C only
• E) B and C only

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Definitions:

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

FIFO Method

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "First-In, First-Out."

Beginning Inventory

The value of inventory that a company has at the beginning of an accounting period, before any purchases or production.

Cost Of Production Report

A document that outlines the total cost and production information for a specific period within a manufacturing department.