Contra Proferentem Means

question 12

Multiple Choice

Contra Proferentem means:

• A)where there is an ambiguity in a contract term, that term is interpreted against the one who did not draft the contract
• B)the contract is against public policy
• C)where there is an ambiguity in a contract term, that term is interpreted against the one who drafted the contract
• D)the courts prefer a contract to be in writing, not done orally
• E)the contract is for an illegal purpose

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Definitions:

Equivalent Units

Equivalent units are used in cost accounting to represent a portion of unfinished goods in a way that can be compared to complete units, facilitating the process of costing inventory.

Work In Process Inventory

Items that are in the production process but have not yet been completed, representing one of the three main inventory accounts.

First-In, First-Out

An inventory costing method where the goods first added to the inventory are the first to be sold, reflecting in more current inventory costs in financial statements.

Brazing Department

A specific section within a manufacturing facility where brazing, a metal-joining process, is carried out.