Answer:
c. Because X's failure to disclose the condition of the faucet is not material.
Explanation:
In order to consider X's failure as material and therefore allowing Y to rescind the contract, the failure to disclose must involve an element of the contract that is in such a bad condition that it would make the contract as "irreparably broken".
In this case, contract law provides other remedies that Y can use to try to make X pay for the repairs, but Y cannot unilaterally rescind the contract.
Answer:
Option D Costs incurred prior to deciding whether or not to produce a new product are sunk costs.
Explanation:
Option A The allocated costs might include fixed costs and are not relevant, so must not be included in the project appraisal.
Option B Sunk costs are not relevants costs and must not be included in the cost of the project. So this statement is also incorrect.
Option C Synergy occurs due to increase in the revenue and decrease in costs due to parenting strategy of the parent company.
The reason is that it is the definition of the sunk cost and is correctly stated in the option D. So the option D is correct here.
Answer: D
Explanation: High turnover rates suggest that Golden Creamery has problems hiring the most appropriate employees, which supports the implementation of a testing program. If hourly workers remained at the firm for a long time, then that would suggest the firm's current hiring practices do not need to be modified.
