An Agent Can Limit the Liability for the Acts of a Subagent

question 13

Multiple Choice

An agent can limit the liability for the acts of a subagent to the principal by _____.

• A) issuing express authority
• B) using a ministerial clause
• C) issuing implied authority
• D) using an exculpatory clause

---

Definitions:

Direct Labor-Hours

Hours worked by employees directly involved in the production process, these hours are used for calculating the cost of manufacture per product.

Manufacturing Overhead

All manufacturing costs that are not directly related to the production of a product, including indirect materials, indirect labor, and other indirect costs.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or jobs, based on a certain activity, such as direct labor hours or machine hours.

Direct Labor-Hours

The total time spent by workers directly involved in the manufacturing process.