Pascal Is a Buyer for Kelly Benjamin Department Store in Kentucky

question 29

Multiple Choice

Pascal is a buyer for Kelly Benjamin department store in Kentucky. While Pascal was buying visiting California, he found a solar car on sale for $3,000. Pascal contracts to buy the car for Kelly Benjamin, who wants to buy a solar car. Kelly instructs the seller to ship the car. Under these circumstances:

• A) Kelly is considered to have ratified the contract.
• B) Kelly is not liable since Pascal made the purchase.
• C) Pascal and Kelly are both liable on the contract.
• D) Pascal is considered to have ratified the contract.

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Definitions:

Unfavorable Differences

Variances that occur when actual costs are higher than the budgeted or standard costs, often considered as negative variances.

Relevant Range

The range of the activity index over which the company expects to operate during the year.

Total Costs

The aggregate amount of all expenses incurred in the production of goods or services, including fixed and variable costs.

Linear

A mathematical relationship or function that can be graphically represented by a straight line, characterized by consistent changes.