Additional Costs That Result from Customising Products to Meet Individual

question 79

True/False

Additional costs that result from customising products to meet individual customer specifications are most likely to be customer sustaining costs.

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Definitions:

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.

Bilateral Contract

A type of agreement involving two parties where each side promises to fulfill certain obligations to the other; a mutual exchange of promises.

Unilateral Contract

A type of contract in which only one party makes a promise or commitment in exchange for an act performed by the other party.

Illusory

Something that is misleadingly attractive or gives a false impression of reality.