Bud Approves on Behalf of Cody-But Without Authorization-A Contract with Devon

question 14

Multiple Choice

Bud approves on behalf of Cody-but without authorization-a contract with Devon to build a new silo.Cody does not ratify the contract.Later,Devon tries to enforce the deal.This attempt will be

• A)partly successful.
• B)partly unsuccessful.
• C)totally successful.
• D)totally unsuccessful.

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Definitions:

Mixed Costs

Expenses that have both fixed and variable components, changing in total with the level of activity but not in proportion.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future business decisions.

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with volume but remaining constant per unit.

Variable Cost

Costs that change in proportion to the good or service that a business produces, such as raw materials and direct labor expenses.