Hannah, an administration manager of a catering supply company, was authorised by her general manager to order
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Question:
The general manager eventually found out what Hannah had done when he received an invoice from Kitchens Galore at the end of August. He called the wholesaler and told them that it would only pay a maximum of $40,000. Kitchens Galore insists that they should be paid $48,000 because this was what Hannah, an authorised representative of the catering supply company, had ordered.
Is Hannah's company obligated to pay the higher amount?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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