The Direct Material Cost Is £10,000 When 2,000 Units Are

question 30

Multiple Choice

The direct material cost is £10,000 when 2,000 units are produced. What is the direct material cost for 2,500 units produced?

• A)£10,000
• B)£8,000
• C)£15,000
• D)£12,500

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Definitions:

Counter Offer

A new offer made in response to an offer received, which implies the rejection of the original offer.

Revocation

The official cancellation or withdrawal of an offer, agreement, or license, making it no longer valid.

Offeror Dies

A legal situation that generally results in the termination of an offer when the person making the offer passes away before acceptance, affecting contract formation.

Insanity Of Offeror

A legal defense where the validity of a contract is questioned due to the mental capability of the party making the offer at the time of agreement.