An Agreement to Settle an Earlier Contract That Was in Dispute

question 3

Multiple Choice

An agreement to settle an earlier contract that was in dispute is:

• A)An illusory promise.
• B)A putout contract.
• C)A novation.
• D)The exercise of an option to cancel.
• E)An accord and satisfaction.

---

Definitions:

Units

In a manufacturing or production context, units refer to individual items or products.

Variable Expenses

Costs that fluctuate with changes in production volume or business activity levels, such as raw materials and direct labor.

Fixed Expenses

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Break-even Point

The juncture where the sum of all costs matches the total income, leading to neither a profit nor a loss.