Which Statement Is True Regarding Ethan's Remark That He Had

question 16

Multiple Choice

Which statement is true regarding Ethan's remark that he had an absolute right to continue paying Simone until the lease expired?

• A)Ethan is correct because Simone had no right to transfer ownership in the first place.
• B)Ethan is correct only if he gave notice to Simone prior to the sale that he objected to it.
• C)Ethan is correct only if there is less than one year left on his lease agreement.
• D)Ethan is correct.
• E)Ethan is incorrect because while he has the right to pay the same amount,Simone has the right to assign the right to receive the payments to Mack or someone else unless the lease terms prevent her from doing so.

---

Definitions:

Milling Department

A department within a manufacturing facility where raw materials are ground, crushed, or cut into small pieces using machines like mills.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated by dividing estimated overhead costs by an allocation base, like direct labor hours or machine hours, before the period begins.

Forming Department

A specific section within a manufacturing process where materials are shaped or formed into parts or products.

Machine-Hour

A unit of measure indicating the operating time of a machine, used in costing to allocate expenses based on machine use.