Stein Has Agreed to Act as an Agent for Tayman

question 10

Multiple Choice

Stein has agreed to act as an agent for Tayman Resources Inc for two years.Under the agreement, Stein is responsible for finding mining claims for Tayman to invest in.During the two-year term, Stein has agreed not to work for anyone else.No other terms have been agreed to in the agency agreement.Which of the following is TRUE?

• A)Neither Stein nor Tayman can terminate the agency on notice to the other.
• B)The agency is terminated if Tayman goes abroad to look for mining claims.
• C)The agency is terminated at the end of the two-year term if it is not expressly or impliedly extended beyond that term.
• D)The agency continues even if Stein becomes physically unable to look for mining claims for Tayman.
• E)This form of agency is not terminated by the bankruptcy of either party because the mining work may take the agent all over the world including places where there is no bankruptcy law

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Definitions:

First Stage Allocations

The initial process of distributing overhead costs to various cost centers or departments in a company.

Order Filling

The process of completing a customer's order, including picking, packing, and shipping the product.

Activity Rate

A rate used in activity-based costing to assign costs to cost objects, based on the activities required to produce each object.

Activity-Based Costing

A costing method that detects activities within an organization and allocates the cost of each activity to all products and services based on their actual usage.