Lucille Is Married to Marcus

question 49

Multiple Choice

Lucille is married to Marcus. Lucille buys food for their children's lunches and charges the cost to Marcus's account. This is​

• A) ​an agency by operation of law.
• B) ​an agency by estoppel.
• C) ​an agency by ratification.
• D) ​not an agency relationship.

---

Definitions:

Activity Rate

A measure used in activity-based costing to allocate overhead costs to products or services.

Order Filling

The process of completing a customer's order, from picking and packing the items to shipping them.

Product Margin

Product margin refers to the difference between the selling price of a product and the cost of goods sold, representing the profit made on each product sold.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to corresponding products and services according to the activities involved.