Oberon Is a Salesperson for Precision Instruments,Inc

question 34

Multiple Choice

Oberon is a salesperson for Precision Instruments,Inc.He tells Quad,a customer,that a device has a certain ca?pability when,as Oberon knows,it does not.In reliance,Quad buys the device.Liable for this misrepresen?ta?tion is

• A)neither Oberon nor Precision.
• B)Oberon and Precision.
• C)Oberon only.
• D)Precision only.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the amount of production or sales, including items like labor and materials.

Fixed Costs

Expenses that don't change in total over a period, regardless of the level of output or sales.

Operating Income

The income generated from the core operations of a business, excluding costs and expenses like taxes and interest payments.

Direct Materials Price Variance

Direct materials price variance refers to the difference between the actual cost of materials used in production and the standard cost expected for those materials.