ABC Corporation Induced Computer Programmers to Leave Their Old Jobs

question 38

Multiple Choice

ABC Corporation induced computer programmers to leave their old jobs through the promise of higher salaries. However, when the programmers started to work for ABC, the company denied making any promises to them. Through its behaviour, what has ABC likely violated?

• A) implied covenant rules
• B) no laws-as long as there were no written guarantees, ABC cannot be held liable
• C) the job-as-right concept
• D) implied contract rules

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Definitions:

Weighted-Average Cost Method

An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold, weighted by the quantity of goods.

LIFO

Last In, First Out is a method of valuing inventory where the items that were most recently produced or purchased are the first ones to be used in the calculation of cost of goods sold.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, such as monthly or yearly, rather than continuously.

Average-Cost Method

An inventory valuation method that calculates stock value based on the average cost of goods available for sale during the period.