An Oral Contract Containing a Promise by an Executor to Pay

question 51

Multiple Choice

An oral contract containing a promise by an executor to pay estate debts from estate funds is:

• A) binding.
• B) voidable by the executor or administrator.
• C) enforceable against the executor only if the executor signs written proof of the agreement.
• D) enforceable against the other contracting party only if that party signs a written agreement.

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Definitions:

Variable Overhead

Costs of indirect production activities that fluctuate with the level of production output, such as electricity for machinery or materials handling costs.

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing process of a product and can be easily traced to the product itself.

Direct Labor-Hours

A measure of the total amount of time worked by employees directly involved in manufacturing a product or delivering a service.

Variable Overhead

Costs of production that vary with the level of output, such as utility expenses or raw material costs.