In Which of the Following Does a Person Have a True

question 68

Multiple Choice

In which of the following does a person have a true lease?

• A) When a person contracts for a room in a boarding house for one month.
• B) When a person's one-year lease has expired and he has paid no further rent, but remains on the premises contrary to the wishes of the lessor.
• C) When he has contracted for a warehouse for a two-week period commencing June 1, 2016.
• D) When he has been given permission to sleep on a cot in the dark room used at the photography shop where he works.
• E) When he spends the night in an inn.

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Definitions:

Incremental Costs

The additional costs incurred when a business increases its level of activity or output, also known as marginal cost.

Additional Revenues

Income received that is over and above the main or expected sources of revenue for a business or an organization.

Direct Material

Raw materials that are directly attributable to the production of goods, essential in determining the cost of goods sold.

Direct Labor

Direct Labor refers to the work of employees that is directly associated with the production of goods or the provision of services, distinguishable as wages for hands-on work.