If Marge, a Vice President, Made a Contract on Behalf

question 3

True/False

If Marge, a vice president, made a contract on behalf of Barker Corporation when it was not within her authority, she is liable if she negligently exceeded her authority.

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Definitions:

Institute of Management Accountants

A worldwide association of accountants and financial professionals in business, focused on promoting management accounting.

Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard (or expected) overhead costs for a given accounting period.

Standard Overhead

The fixed amount of overhead costs that are expected to be incurred under normal operating conditions.

Volume Variance

The difference between the budgeted volume of production or sales and the actual volume, impacting costs or revenue.