When Express Authority Is Granted for an Agent to Enter

question 101

Multiple Choice

When express authority is granted for an agent to enter into a contract legally required to be in writing,most states require the grant of authority to also be in writing.This requirement is known as the ________.

• A)equal dignity rule
• B)substantial performance doctrine
• C)frustration of purpose doctrine
• D)rule against perpetuities
• E)parol evidence rule

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Definitions:

Absorption Costing

A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Variable Costing

An accounting method that includes only variable costs - costs that change with production levels - in product cost calculations.

Net Operating Income

It refers to the profit generated from a company's ordinary, core business operations after subtracting operating expenses from operating revenues.

First Year

The initial year of operation, production, or accounting period.