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Joe was a chauffeur, working for Sam. When Joe was taking the car in to have it serviced, he saw a brand new BMW and bought it on behalf of Sam. When he took it home, Sam was upset, explained that he didn't want a new BMW, and told him to take it back. Joe persuaded him to take it for a test drive first. Explain the legal position of the parties.
Unit Level Activities
Activities that are performed each time a unit is produced, directly associated with production volume.
Batch Level Activity
Actions or processes that relate to producing a batch of goods or services, often involving costs that change with the number of batches produced rather than individual units.
Medical Clinic
A healthcare facility that primarily focuses on the care of outpatients, offering various medical services and treatments.
Activity-Based Costing
Activity-based costing is a method of allocating overhead costs to specific products or services based on the activities required to produce them, providing a more accurate reflection of the costs associated with each product or service.
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