Which One of the Following Is Enforceable

question 157

Multiple Choice

Which one of the following is enforceable?

• A) Mr. Ho promised to give his needy friend Mr. Jahn $100.
• B) Ms. Jones promised to pay an additional $100 to Mr. Wood if Wood finished the existing contract on time, according to the terms of the contract.
• C) Mr. Baker was so sick of an old chair that, when Mr. Venson offered him $10 for it, he agreed (i.e., promised to sell it to him), although the market value of the chair was $80.
• D) Ms. Goode promised to send $10 to Mr. Paul, who kindly came and warned her when he saw a tow truck approach her car.
• E) An ad in the paper promises to pay $5 for the return of a lost ring, but the person who finds and returns the ring never saw the offer in the newspaper.

Recognize the beneficial and negative impacts of conflict within teams and organizations.

Understand and compute material quantity and price variances.

Understand and compute labor quantity, price, and total variances.

Understand and compute manufacturing overhead variances, including controllable and volume variances.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future business decisions.

Future Costs

Costs that will be incurred in the future, impacting decisions on investments, production, and other business activities.

Relevant

Relates to or directly impacts the subject under discussion.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, insurance, and salaries.