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:

Direct Labor Cost

The total expense of employing workers who are directly involved in the production of goods, including wages and salaries.

Machine-hours

A measure of the total run time of machines in the manufacturing process, often used for costing purposes.

Overapplied Overhead

Overapplied overhead occurs when the allocated manufacturing overhead costs in an accounting period are less than the actual overhead costs incurred.

Job-order Costing

A cost accounting system that assigns costs to specific production batches or jobs.