A Principal Who Lacks Contractual Capacity Can Appoint an Agent

question 21

True/False

A principal who lacks contractual capacity can appoint an agent.

Understand the distinction between different types of costs in a manufacturing setting, including period costs and product costs.

Grasp the concepts and importance of continuous improvement and just-in-time manufacturing in operational efficiency.

Identify the circumstances under which product costs are expensed on the income statement.

Differentiate between fixed, variable, and mixed costs based on their behavior and relevance to decision-making.

---

Definitions:

NPV

Net Present Value (NPV) is the calculation used to find the present value of cash flows at a specific discount rate, often used to assess the profitability of an investment.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flows to recover the initial capital outlay.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, measuring financial health.

Initial Cost

The acquisition cost of an asset or investment, covering all expenses involved in making the asset operational, including purchase price, installation, and setup.