In Determining Whether the Parties to an Agreement Intended to Form

question 20

Multiple Choice

In determining whether the parties to an agreement intended to form a contract,why do the courts so often rely upon legal presumptions?

• A)Because parties frequently lie about their intention.
• B)Because it is rare for both parties to have the same intention.
• C)Because parties rarely express their intention.
• D)Because that is the law.

---

Definitions:

Cost Per Equivalent Unit

A calculation used in process costing to allocate costs to partially completed units, considering them as fractions of whole units.

Ending Work

The work in process inventory that is yet to be completed at the end of an accounting period.

Process Inventory

Inventory that consists of items that are in the production process but have not yet been completed.

Cost System

An accounting system designed to capture, measure, and allocate costs associated with the production of goods or provision of services.