If an Offer Does Not State a Time for Acceptance

question 15

Multiple Choice

If an offer does not state a time for acceptance, it is valid:

• A) for a reasonable time, which depends on the circumstances of the offer.
• B) for 10 days from the day the offer is made.
• C) for 20 days from the day the offer is received by the offeree.
• D) until the offeree accepts it.

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Definitions:

Standard Cost System

A cost accounting system that uses cost units determined in advance for materials, labor, and overhead to estimate the cost of production.

Fixed Manufacturing Overhead

Regular, consistent expenses related to manufacturing that do not vary with the level of production, such as rent, salaries, and insurance.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead cost incurred and the expected (or standard) variable overhead cost for the actual production volume.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor.