A Contract Whose Terms Are Expressed Orally or in Writing

question 4

Short Answer

A contract whose terms are expressed orally or in writing is legally referred to as a(n) ____________________ contract.

---

Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that assigns a cost to partially completed units, making them equivalent to fully completed units for inventory valuation.

Finished Goods Inventory

Products that have completed the manufacturing process but have not yet been sold or distributed to customers.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of production costs.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of fully completed units for inventory valuation.