Which of the Following Occurs When by Agreement One of the Parties

question 20

Multiple Choice

Which of the following occurs when by agreement one of the parties substitutes a different performance for his original duty under the contract?

• A) Accord and satisfaction
• B) Novation
• C) Substituted contract
• D) Mutual rescission
• E) Alteration

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Definitions:

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Activity Costs

Expenses associated with specific business activities, often analyzed in activity-based costing to determine product or service profitability.

Total Activity Cost

The complete cost associated with a specific business activity, encompassing both direct and indirect expenses.

Activity Costs

Expenses tied to specific activities, such as production or research and development, often used in activity-based costing.