Chaz Hires Darin to Act as Her Agent in the Purchase

question 68

Multiple Choice

Chaz hires Darin to act as her agent in the purchase of Erector Steel Corporation.Chaz does not want the seller to know that she is the buyer,so she asks Darin to represent that he is buying the firm for himself.Chaz is

• A)a disclosed principal.
• B)an independent contractor.
• C)an undisclosed principal.
• D)a partially disclosed principal.

---

Definitions:

Fixed Manufacturing Overhead

Ongoing expenses that do not change in total with the level of production or sales volume, such as salaries, rent, and insurance, associated specifically with the manufacturing process.

Variable Costing

An accounting method that includes only variable costs—those that change with production levels—in the cost of goods sold and inventory valuation.

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, direct labor, and allocated overhead.

Segmented Income Statement

An income statement that separates costs and revenues into different segments, departments, or divisions of a business.