Sam Owed Joe $6000 Due January 12, 2017

question 55

Multiple Choice

Sam owed Joe $6000 due January 12, 2017. On January 1st, Joe said he'd take $5000 in full satisfaction of the debt if Sam paid him $5000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1000 he (Joe) was legally owed. Which of the following is true?

• A) Joe would win because his forgiveness of the loan was gratuitous, (i.e., unsupported by consideration).
• B) Joe would win because they cannot change the original deal.
• C) Joe would lose because of the doctrine of quantum meruit.
• D) Joe would lose because of the rule that past consideration is no consideration.
• E) Joe would lose because early repayment constituted consideration to support the new arrangement.

Identify responsibilities for different variances and their implications on managerial accountability.

Explain the significance of standard cost recording in inventory management.

Analyze the effect of labor rates on cost variances and operational efficiency.

Recognize the importance of standard costing in identifying and managing production variances.

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Definitions:

Sales in Units

The total number of individual items sold by a company, as distinguished from sales measured in currency.

Indirect Costs

Expenses that are not directly traceable to a specific product or process, such as utilities or administrative salaries.

Contribution Margin

is the amount of revenue left after deducting variable costs, which can be used to cover fixed costs and contribute to profits.

Variable Cost Per Unit

The cost that changes with the level of output or sales, calculated on a per-unit basis.