A Contract Can Never Be Voided Simply Because One Party

question 17

True/False

A Contract can never be voided simply because one party could not have know the scope required

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Definitions:

Allocation Base

A measure or statistic that is used to distribute costs among different departments, projects, or products.

Overhead

Refers to the ongoing business expenses not directly tied to creating a product or service, including rent, utilities, and administrative costs.

Departmental Overhead Rate Method

The departmental overhead rate method is a way of allocating indirect costs to products or services based on the overhead rates of specific departments within an organization, rather than using a single company-wide rate.

Overhead

The total cost of running a business that cannot be directly attributed to the production of goods or services, similar to factory overhead but can apply to non-manufacturing costs.