A Contract May Not Be Voluntarily Entered into in the Event

question 5

Multiple Choice

A contract may not be voluntarily entered into in the event of

• A)mistake
• B)fraud
• C)duress
• D)any of the above

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Cost

Expenses that do not change in proportion to the level of production or business activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with activity level but not proportionately.

Manufacturing Cost

The total cost incurred by a company to produce goods, including direct materials, direct labor, and manufacturing overhead expenses.