Identify the Contracts Whose Provisions Are Dynamic with Respect to the Environment

question 30

Multiple Choice

Identify the contracts whose provisions are dynamic with respect to the environment in which they are executed.

• A)Facultative contracts
• B)Relational contracts
• C)Volatile contacts
• D)Transient contracts
• E)Mutable contracts

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Committed Fixed Costs

Expenses that a company has committed to pay over a period, which do not vary with the level of production or sales.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy.

Variable Cost

Expenses that change in proportion to the amount of goods produced or the volume of sales.