Discuss Two of the Four Elements of a Binding Contract

question 9

Short Answer

Discuss two of the four elements of a binding contract.

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Definitions:

Tax Rates

The fraction of earnings taken as tax from a person or corporation by the authorities.

Fixed Overhead Costs

Costs that do not change in total with changes in the volume of production or services.

Production Capacity

The maximum amount of output that a production facility can create, given the resources and constraints.

Negotiated Transfer Price

A price for goods or services transferred within a company, determined through negotiation between the selling and buying divisions or subsidiaries.