Discuss the Meaning of a Void Contract and a Voidable

question 10

Essay

Discuss the meaning of a void contract and a voidable contract, and the effect of a determination that a contract is either void or voidable.

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Definitions:

Absorption Costing

A technique in cost accounting that incorporates all costs of production, including fixed and variable, into the valuation of inventory and cost of goods sold.

Variable Costing

An accounting method that includes only variable production costs as product costs, treating fixed manufacturing overhead as an expense of the period in which it is incurred.

Unit Product Cost

The total cost associated with producing a single unit of a product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a finished product.