A Disclosed Principal Is Liable to a Third Party for a Contract

question 13

True/False

A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.​

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Definitions:

Work in Process Inventory

The value of materials, labor, and overhead costs in products that have been started but are not yet completed in the manufacturing process.

Raw Materials Inventory

The stock of unprocessed materials waiting to be used in the manufacturing process.

Underapplied Overhead

The situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Predetermined Rate

A rate estimated before the start of a period, often used in budgeting and costing processes.