The Doctrine of Promissory Estoppel

question 36

Multiple Choice

The doctrine of promissory estoppel:

• A)is a doctrine enforcing noncontractual promises.
• B)includes as a requirement within the doctrine that there has been justifiable reliance on the promise.
• C)a doctrine relying on justice and not contractual rights.
• D)All of the above

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Definitions:

Factory Overhead Costs

Factory overhead costs encompass all indirect costs associated with manufacturing, excluding direct materials and direct labor.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.

Prepaid Insurance

An asset account that represents the amount of insurance premiums that have been paid in advance and that has not yet expired as of the balance sheet date.

Factory Overhead Applied

The allocation of estimated factory overhead costs to individual units of production.