To Allow Recovery and Avoid Injustice When a Contract Does

question 515

Multiple Choice

To allow recovery and avoid injustice when a contract does not exist the courts may allow:

• A) restitution
• B) voidable contract
• C) mitigation
• D) quantum meruit
• E) none of the other choices

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Definitions:

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs required to convert raw materials into finished goods.

Cost Of Goods Sold

The cost of goods sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Job Costing

A cost accounting system used to assign costs to specific jobs or batches, typically used in industries with unique, customizable orders.