____ Consists of Oral or Written Instructions Given by the Principal

question 194

Multiple Choice

____ consists of oral or written instructions given by the principal to an agent.

• A) substitute authority
• B) express authority
• C) implied authority
• D) quasi authority
• E) legal authority

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead expenses charged to the period they arise.

Absorption Costing

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

Net Income

The amount of revenue left over after all expenses and taxes have been deducted.

Variable Costing

Variable costing is an accounting method in which only variable production costs (direct materials, direct labor, and variable manufacturing overhead) are included in the cost of goods sold, with fixed overhead expenses treated as period costs.