Sara Believes That She Has a Strong Case Against Tom

question 36

Multiple Choice

Sara believes that she has a strong case against Tom for the breach of an employment contract.Despite this belief,Sara cannot file a suit against Tom after the expiration of the time allowed for the filing under

• A)a statute of limitations.
• B)the doctrine of laches.
• C)an equitable maxim.
• D)the remedy at law.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Fixed Manufacturing Overhead

is the sum of all the production costs that do not change with the level of output, including costs like factory rent, salaries of permanent employees, and depreciation of factory equipment.

Direct Labour

Labor of employees engaged directly in the manufacturing process or production work, essential for creating the product.