Chris Offered to Take Kelly to the Movie

question 19

Multiple Choice

Chris offered to take Kelly to the movie. Kelly went to the movie theatre but Chris did not arrive. Can Chris sue Kelly for breach of contract?

• A) Yes, there was an offer and an acceptance.
• B) Yes, there was mutual intent.
• C) No, the offer was an invitation to treat.
• D) No, the offer was a gratuitous promise.
• E) All of the answers are correct.

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Definitions:

Cost Object

Any item for which cost is measured and assigned, such as products, services, or departments.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to products.

Direct Labor Hours

The total hours worked by employees directly involved in the production process, used in calculating cost allocations and efficiency.

Allocation Base

A criterion or measure used for distributing or apportioning costs among various cost objects in a fair, equitable, and rational manner.