An Example of a Discretionary Cost Is the Cost of Research

question 50

True/False

An example of a discretionary cost is the cost of research and development.

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Definitions:

Known Principal

A principal whose identity is disclosed to the third party by the agent at the time of a particular transaction.

Agent Liability

The legal responsibility of an agent to act in the best interest of their principal, facing consequences for failure to comply.

Apparent Authority

The power that a third party perceives an agent to have, based on the principal's representations, leading the third party to reasonably believe that the agent is authorized.

Undisclosed Principal

A person whose existence is unknown to the third party in a contract made by an agent on their behalf.