Gillian Is a Director of Fizzy Soda Company

question 41

Multiple Choice

Gillian is a director of Fizzy Soda Company.As a director,Gillian can act as an agent to bind Fizzy

• A)in all circumstances.
• B)in no circumstances.
• C)to any contract in which Fizzy does not have a conflict of interest.
• D)to any contract that represents a corporate opportunity for Gillian.

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum the consumer believes it is worth.

Absorption Costing

A pricing methodology that sums up all production-related costs, from raw materials and labor to both flexible and fixed overheads, in calculating the expense of a product.

Cost-plus Pricing

A pricing approach that sets the selling price by adding a predetermined markup to the cost per unit of a product.

Return on Investment

A measure of the profitability and efficiency of an investment, calculated as net profit divided by the cost of the investment.