In the Case of _____ the One Being Defrauded Actually

question 50

Multiple Choice

In the case of _____ the one being defrauded actually knows he or she is entering into a contract, but has been told untruths about significant parts of the contract that form the basis of the bargain.

• A) unconscionability
• B) fraud in the inducement
• C) undue influence
• D) duress

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Definitions:

Conversion Cost

Conversion cost is the sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Product Cost

The expenses incurred to create a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product.

Period Cost

Costs that are expensed in the period in which they are incurred, as opposed to being capitalized or included in the cost of goods sold.