Metro Moving Service Holds Itself Out to Customers as Being

question 51

Multiple Choice

Metro Moving Service holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, the outfit is most likely

• A)a corporation by estoppel.
• B)a de facto corporation.
• C)a de jure corporation.
• D)ultra vires .

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied to all production units irrespective of the department in which they were produced.

Overhead Cost Pool

A collection of indirect expenses grouped together to be allocated systematically to different departments, processes, or products.

Departmental Overhead Rate Method

A calculation used in cost accounting to allocate overhead expenses to specific departments based on their respective share of direct costs or activity levels.

Allocation Base

A criterion or measure, such as direct labor hours or machine hours, used for allocating costs among multiple cost objects.