An Agreement by Parties to a Contract Not to Proceed

question 34

True/False

An agreement by parties to a contract not to proceed with performance is not supported by consideration.

---

Definitions:

Direct Labor Standard

A benchmark for the amount of labor directly involved in producing a unit of output, used for budgeting and measuring efficiency.

Standard Cost Systems

Accounting systems that use standards for each element of manufacturing cost entering into the finished product.

Standards

Agreed-upon guidelines or criteria for products, services, or processes to ensure consistency and quality.

Product Costs

Expenses directly tied to the production of goods or services, including direct labor, direct materials, and manufacturing overhead.