Which of the Following Is Correct with Respect to Restrictive

question 47

Multiple Choice

Which of the following is correct with respect to restrictive covenants included in employment contracts?

• A) Such restrictive covenants are always void and have no place in employment contracts.
• B) Such restrictive covenants are enforceable in court if reasonable and not against the public interest.
• C) A void restrictive covenant destroys the whole contractual relationship and neither party has any obligations under the agreement.
• D) For such a clause to be valid, it is only necessary to show that it was needed to protect the employer's interest.
• E) The imposition of such a restriction is at the option of the employer and the employee has no say in the matter.

---

Definitions:

Cost Reconciliation

The process of checking and ensuring that the accounting records regarding costs correspond with the actual expenses incurred.

Units Transferred

The quantity of items moved from one stage of production to another, or from the production department to finished goods inventory.

FIFO Method

An inventory valuation method where it is assumed that the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Weighted-Average Method

An inventory costing approach that averages the cost of goods available for sale for the allocation of cost of goods sold and ending inventory.