Which of the Following Is Necessary in Order to Establish

question 64

Multiple Choice

Which of the following is necessary in order to establish that a mutual mistake involving a basic assumption about the subject matter of a contract was made?

• A) That the mistake involved the existence, quality, or quantity of the items to be exchanged.
• B) That the mistake involved whether a party could profit from the contract.
• C) That the mistake involved whether a party could profit from the contract or whether a party misunderstood the time constraints involved in regard to the contract.
• D) That the mistake involved the identity of parties to the contract or whether a party misunderstood the time constraints involved in regard to the contract.
• E) That the mistake involved a misunderstanding of law as to whether or not the UCC applied.

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Definitions:

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remain constant regardless of the level of production, such as depreciation on factory equipment or salaries of factory supervisors.

Unit Product Cost

represents the total cost to produce one unit of product, including direct materials, direct labor, and overhead.

Fixed Manufacturing Overhead

encompasses the consistent, non-varying costs of producing goods, such as factory lease or salary of supervisors, linked but differently phrased to fixed manufacturing expenses.

Outside Supplier

An external entity that provides goods or services to a company, which are not produced in-house.