Which of the Following Is True Regarding Notice of Termination

question 21

Multiple Choice

Which of the following is true regarding notice of termination of an agency relationship?

• A)Depending on the circumstances,notice of termination can be actual or constructive.
• B)Notice of termination of an agency relationship must be given by actual notice.
• C)Notice of termination of an agency must be given in writing.
• D)Actual notice of termination of an agency relationship is not needed once 60 days have passed since the termination because at that point notice is presumed.
• E)Actual notice of termination of an agency relationship is not needed once 30 days have passed since the termination because at that point notice is presumed.

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Definitions:

Fixed Manufacturing Overhead

Expenses related to manufacturing that remain constant regardless of the level of production, such as building lease payments and equipment depreciation.

Deferred Inventories

Inventory costs that are not expensed in the period they are incurred but are deferred to a future period.

Absorption Costing

This accounting practice involves adding all costs associated with production, including direct materials, labor, and both kinds of overhead expenses (variable and fixed), into the cost calculation of a product.

Unit Product Cost

The total cost (fixed and variable) associated with making one unit of product.