Kim Sends an Offer to Leo to Cut Down and Remove

question 56

Multiple Choice

Kim sends an offer to Leo to cut down and remove a tree for $200.Kim says,"If you say nothing,I will consider you to have accepted my offer." If Leo does not respond,he will be deemed to

• A)accept the offer.
• B)make a counteroffer.
• C)reject the offer.
• D)none of the choices.

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Definitions:

Differential Income

Definition: The difference in income between two alternative business decisions, focusing on the incremental or additional revenue generated.

Variable Cost

Expenses that change in proportion to the level of production or sales, including costs like raw materials and direct labor.

Differential Analysis

A method used in both financial and managerial accounting that focuses on the differences in costs and revenues between two or more business decisions.

Depreciated

The decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors, reflected in accounting through depreciation.