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If a Contract Is Not Evidenced in Writing This Does

question 101

Essay

If a contract is not evidenced in writing this does not make it void under the Statute of Frauds; it is merely unenforceable. Explain this distinction.


Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and manufacturing overhead) in the cost of a product.

Total Period Cost

The sum of all costs incurred by a business during a specified period, excluding product costs.

Variable Costing

An accounting method that only includes variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Finished Goods Inventory

Items in stock that are completed and ready for sale, representing one of the stages in the production inventory.

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