Barbara, a Skilled Engineer, Was Hired at Mainco Enterprises

question 36

True/False

Barbara, a skilled engineer, was hired at Mainco Enterprises. She was asked to sign a non-compete clause limiting future employment if she left Mainco. A court would be likely to enforce the non-compete clause if it was put into place to protect trade secrets or confidential information.

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Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs.

Mixed Cost

Expenses that have both fixed and variable components, changing with the level of production or sales activity.

Client-visits

The occurrence of clients or potential clients physically coming to a business location or being visited by the business’s representatives.

High-low Method

A technique used in cost accounting to estimate variable and fixed cost elements of a cost by using the highest and lowest activity levels.