If a Principal Ratifies a Contract Without Knowing All of the Facts,the

question 3

True/False

If a principal ratifies a contract without knowing all of the facts,the principal can rescind the contract.

---

Definitions:

Actual Overhead

The real costs incurred by a business for its overhead during a specific period, not estimated.

Production Efficiencies

The optimization of processes to maximize output while minimizing waste and costs.

Labor Costs

The total expenses incurred by a company for the compensation of its employees, including wages, benefits, and taxes.

Factory Depreciation

The decrease in value of manufacturing equipment and facilities over time due to wear and tear or obsolescence, considered an indirect cost of production.