In Determining Whether a Contract Containing Both a Sale of Goods

question 46

Multiple Choice

In determining whether a contract containing both a sale of goods and a service is a UCC or general contract,the majority of states follow the:

• A) CISG.
• B) predominant purpose test.
• C) parol evidence test.
• D) procedural or bargaining scrutiny.

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Definitions:

Fixed Costs

Expenses that do not change in proportion to the level of production or sales activity within a certain range.

Plantwide Overhead Rate

A single rate used to allocate all of a plant's manufacturing overhead costs to its production activities based on a uniform cost-driver.

Cost Driver

An element that influences the expense of an operation or procedure to vary, utilized in activity-based costing for more precise cost allocation.

Support Department

An organizational unit that provides essential services, such as human resources or IT support, but does not directly contribute to the production of goods or services.