Which of the Following Correctly Matches the Reality That Contracts

question 21

Multiple Choice

Which of the following correctly matches the reality that contracts cannot recite or provide for all contingencies,leaving some issues unstated?

• A) The degree of certainty established in a contract is not entirely absolute.
• B) Contractual disputes over unknown contingencies require litigation.
• C) Standard form contracts are preferred as they cover all contingencies.
• D) Unknown contingencies cause irreconcilable disputes between businesses.

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Definitions:

Cost of Goods Manufactured

The total production cost (materials, labor, and overhead) of goods completed and ready for sale during a specific period.

Direct Labor

The wages paid to workers who are directly involved in the production of goods or in providing services.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services in the manufacturing process.

Factory Utilities

The cost of services such as electricity, water, and gas used in the manufacturing process.