Which of the Following Is False with Regard to Contract

question 118

Multiple Choice

Which of the following is false with regard to contract law?

• A) To form a contract, there must be an offer that is accepted unconditionally.
• B) A contract is unenforceable if it is required to be evidenced in writing under the Statute of Frauds and is not.
• C) The parties to a contract can always go to court and have the court declare a contract void if the consideration is not adequate, i.e. fair, even if there is no evidence of fraud, duress, undue influence, or mental incapacity.
• D) A contract for a $50,000 boat does not have to be evidenced in writing to be a valid contract.
• E) An exchange of promises can be consideration adequate to form a contract.

Understand the applications of standard cost systems in production and cost control.

Identify the difference between theoretical standards and practical standards and their effect on employee motivation and performance evaluation.

Understand the concept and application of standard costs in cost management and product costing.

Analyze the impact of practical standards on manager attitudes and commitment.

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Definitions:

Cash-Based Measure

An accounting method that recognizes revenues and expenses only when cash is exchanged.

Cash Flow

The overall sum of funds moving into and out of a company, particularly how it impacts the availability of cash.

Average Total Assets

A measure used to evaluate a company's efficiency at using its assets by calculating the average of its total assets over a specific period.

Operating Income

The profit realized from a business's ongoing operations, calculated before interest and taxes.