The Costs That Occur When the Number of Units Produced

question 354

Multiple Choice

The costs that occur when the number of units produced is equal to zero are called the ____ costs.

• A) Variable
• B) Fixed
• C) Incremental
• D) Opportunity
• E) Non-cash

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Equitable Doctrine

Legal principles applied by courts to ensure fairness and justice, often used in cases where traditional laws might not provide a remedy.

Enforceable Agreement

An agreement that is legally binding and can be upheld in a court of law.

Parol Evidence Rule

The parol evidence rule is a legal principle that prevents parties from introducing outside oral or written statements to modify or contradict the terms of a written contract.