Cost Allocation of Shared Facilities Cost Is Intended to Remind

question 82

Multiple Choice

Cost allocation of shared facilities cost is intended to remind managers of:

• A) the cost of using a shared resource.
• B) both the cost and value of using shared resources.
• C) how much capacity a firm has.
• D) why the firm invests in these facilities.

Recognize the importance of performance as a factor in the enforceability of certain agreements.

Understand the "main purpose" rule in guarantee contracts and its implications for contract enforceability.

Recognize exceptions to the Statute of Frauds that allow for the enforceability of oral contracts.

Understand the role of memorandums or notes in evidencing oral contracts and their requirements.

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Definitions:

Discharge By Agreement

Agreement by the parties that a contract is ended.

Discharge By Frustration

The termination of a contract due to unexpected events which render the performance of the contract impossible or radically different.

Condition Subsequent

A condition in a contract that, when fulfilled, can terminate the contract’s obligations or bring it to an end.

Full Force And Effect

A legal term indicating that all terms of a contract or law are currently active and enforceable.