Putting a Bold Disclaimer at the Front of the Handbook

question 49

Multiple Choice

Putting a bold disclaimer at the front of the handbook that says it is not a contract and requiring employees to sign the disclaimer is an attempt by businesses to:

• A) protect themselves from being found to create an implied contract
• B) protect employees from implied contracts
• C) protect employees from express contracts
• D) protect themselves from suits regarding express contracts
• E) none of the other choices are correct

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Definitions:

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.

Direct Labor

Labor costs that can be identified with a specific product or service.

Sales Variance

Captures the effect of quantity sold holding the mix of products sold constant.