Jack Was Fired by Pedro but Decided to Try to Win

question 27

Multiple Choice

Jack was fired by Pedro but decided to try to win back his job as agent by getting a big new contract.He approached Sharon, a new client, and made a pitch to sell Pedro's product.Sharon agreed to buy 100.Jack tells Pedro.What are the legal consequences?

• A)Pedro has to hire Jack again and then make the deal.
• B)Pedro would have to ratify the deal to get the benefit of the contract.
• C)Pedro would have to negotiate the deal with Sharon himself.
• D)Jack would forfeit his commission if Pedro took the contract.

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Definitions:

Overhead Rates

The rates used to allocate indirect costs to products or services, representing the proportion of overheads each product or service carries.

Allocation-Base Usage

The process of distributing costs based on a predetermined criterion or base, such as machine hours or labor costs.

Activity-Based Costing

Activity-based costing is a method in accounting that assigns costs to products and services based on the resources they consume and the activities undertaken to produce them.

Period Costs

Expenses that are incurred by a business during a specific time period but are not directly tied to the production of goods and are reported immediately in the company's income statement.