Which of the Following Is Correct with Regard to Consideration

question 22

Multiple Choice

Which of the following is correct with regard to consideration?

• A) In a unilateral contract, a promise is exchanged for an act or forbearance to act.
• B) In a bilateral contract, there is an exchange of promises.
• C) Legal sufficiency is always related to adequacy of consideration.
• D) Two of these are correct.

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Definitions:

First-In, First-Out

describes an inventory valuation method where goods first acquired are the first to be sold or used.

Process Costing

A costing method used where identical or similar goods are mass-produced, allocating production costs across all units produced.

Conversion Costs

The total expenses of direct labor and manufacturing overhead used to transform raw materials into complete products.

Cost per Unit

The cost incurred for producing, storing, and selling one unit of a product, crucial for pricing and profitability analysis.