If an Offeree Dispatches Both an Acceptance and a Rejection

question 34

Multiple Choice

If an offeree dispatches both an acceptance and a rejection to an offer:

• A)the acceptance is effective as soon as it is dispatched and a contract is created.
• B)the rejection is effective as soon as it is dispatched and no contract can be created.
• C)neither the acceptance nor the rejection is effective and another response must be issued.
• D)whichever response reaches the offeror first will determine whether a contract is created.

Understand the distinctions between different types of costs and their classifications (direct material, direct labor, factory overhead).

Comprehend the function and importance of materials and finished goods ledgers in tracking inventory.

Understand the calculation and application of factory overhead costs, including overapplied and underapplied overhead.

Understand the job order cost accounting system and its application in both manufacturing and service organizations.

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Definitions:

Implied Authority

The authority of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.

Express Authority

Legal authority granted explicitly in a document or spoken agreement, allowing individuals or entities to perform certain acts.

Usual Business

Operations and activities that are considered normal and routine in the day-to-day operations of a company.

Capital Contributed

This refers to the amount of money or value of other assets that owners or shareholders have provided to a company for use in the business.