On June 1^st the Mega Marketing Research Firm Sent Out

question 20

Multiple Choice

On June 1^st the Mega Marketing Research Firm sent out a mail survey to 5,000 potential customers of Mega's client company. The survey stated that everyone who completed the survey and mailed it back would receive a prize. Mega did not expect everyone to respond to the survey and had only 1,000 prizes on hand for the respondents. On July 14^th Sam mailed back his response and eagerly awaited his prize. On July 15^th Mega sent out the last prize it had. Sam's response arrived on July 16^th. It was the 1001^st and Mega wrote back telling Sam that unfortunately all the prizes were gone, and he would not be able to have one.

• A) No contract was formed here as there was no communication of Sam's acceptance before Mega's offer lapsed.
• B) Sam made a counteroffer by returning the completed survey.
• C) Mega had essentially revoked its offer before Sam accepted.
• D) A valid contract was formed between Mega and Sam.
• E) Mega may assert that silence is not acceptance and Sam did not communicate his acceptance on time.

Develop the ability to distinguish between favorable and unfavorable variances and their implications.

Interpret the significance of production volume variances in relation to budgeted and actual production.

Understand how to calculate variable overhead efficiency variances.

Understand how to calculate variable overhead rate variances.

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Definitions:

Possession

The actual holding or control of property or an asset, regardless of whether it is legally owned.

Standard of Care

A level of competence, diligence, and care that is expected of a professional or individual in a specific situation or industry.

Bailee's Right

The rights afforded to a person (the bailee) who temporarily possesses the personal property of another (the bailor), often including the right to use the property under agreed conditions.

Ski Storage

A specific area or facility designed for the purpose of safely storing skis when they are not in use, often found at ski resorts or lodges.