Home Construction LLC Enters into a Contract with Irene to Build

question 5

Multiple Choice

Home Construction LLC enters into a contract with Irene to build a house. Before Home starts to work, the market price for its services increases-in effect, Home will lose money by if it fulfills its contract with Irene. Home notifies her that it will not perform. Home's obligation to perform is

• A) ​breached.
• B) ​discharged.
• C) ​rescinded.
• D) ​suspended.

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Definitions:

Cost Controllability

The ability of a manager or business to influence or manage the costs associated with business operations.

Cost Incurrence

The moment when a company or individual recognizes a financial obligation or expense through the receipt of goods or services.

Responsibility Level

An organizational unit or position that has a specific set of duties and responsibilities for which they are accountable.

Indirect Costs

Expenses not directly associated with the production of goods or services, such as administration and rental costs.