The Term ________ Refers to a Third Party Who Is

question 3

Multiple Choice

The term ________ refers to a third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor.

• A) third-party contractor
• B) third-party assignee
• C) subassignee
• D) intended third-party beneficiary

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Definitions:

Single Plantwide Factory Overhead Rate

A method of allocating factory overhead to products based on a single, consistent rate applicable throughout the entire manufacturing plant.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating factory overhead.

Desk Lamp Production

The process involving the assembly, testing, and packaging of desk lamps for consumer use.

Single Plantwide Factory Overhead Rate

A method of allocating total factory overhead costs to units produced, using a single rate for the entire manufacturing plant.