Which of the Following Is Not a Necessary Element of Promissory

question 6

Multiple Choice

Which of the following is not a necessary element of promissory estoppel?

• A) The promisor and the promisee must engage in a bargained-for exchange.
• B) The promisor must intend or should reasonably expect that the promisee will rely on the promise.
• C) The promisee must in fact rely on the promise in some definite and substantial manner.
• D) Enforcement of the promise is the only way to avoid injustice.

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Definitions:

Variable Selling Expenses

Costs that fluctuate in direct proportion to changes in sales volume, such as commissions and shipping charges.

Administrative Expenses

Costs related to the general operation of a business, such as salaries of executive personnel, accounting, and human resources.

Cash Disbursements

Represents the money flowing out of a company to cover expenses, including payments to suppliers and employees.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the year begins based on estimated costs and activity levels.