A Director Acting Alone Does Not Generally Have Implied Authority

question 47

Multiple Choice

A director acting alone does not generally have implied authority to bind a company unless that director is:

• A)An active director.
• B)A CEO or governing director.
• C)On the board of directors.
• D)A partner in the company.

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Definitions:

Denominator Level

Refers to the total amount of capacity or activity base used to allocate fixed costs to products or services in cost accounting.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated at the beginning of a period by dividing estimated overhead costs by an estimated activity base.

Machine-Hours

A measure of production output or work using machines, calculated as the number of machines used multiplied by the hours they operate.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.