Mack's Bar Sent Olive Outlet an Order for 200 Cases

question 10

Multiple Choice

Mack's Bar sent Olive Outlet an order for 200 cases of olives,to be shipped "as soon as possible." The day Olive Outlet receives Mack's order,it ships the olives.Later that day,Mack phones the Outlet and tries to revoke his offer.Under these circumstances:

• A)Mack cannot revoke,since a contract was created when Outlet shipped the olives.
• B)Mack can revoke because the acceptance had not been received.
• C)Mack can revoke based on principles of promissory estoppel.
• D)Mark cannot revoke,since the olives will get spoilt if it is shipped back.

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Definitions:

Direct Materials Purchases Variance

A measure used in accounting to analyze the difference between the budgeted cost of materials needed for production and the actual cost incurred.

Actual Production

The real quantity of goods or services produced in a specified period, as opposed to planned or expected production levels.

Labor Rate Variance

The difference between the actual labor costs incurred and the standard labor costs expected for the labor hours worked.

Standard Costs

The estimated costs associated with manufacturing, aimed at aiding budgeting and performance evaluation.