A Court Has Been Asked to Determine What the Express

question 39

Multiple Choice

A court has been asked to determine what the express terms of a parties' contract encompass, as well as their purpose in accordance with the parties' intentions. What would most likely be constrained by the application of the parol evidence rule with respect to the contract?

• A) expatiated evidence
• B) expedited evidence
• C) extraneous evidence
• D) expunged evidence

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Definitions:

Activity Base

A measure upon which the allocation of costs is based in activity-based costing, often relating to a metric that causes costs to occur such as machine hours or labor hours.

Cost Behavior

The way in which costs change in relation to variations in an organization’s activity level.

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.

Activity Level

A measurement of the volume of production or the quantity of services provided.