If Parties to a Contract Agree That It Will Not

question 74

Multiple Choice

If parties to a contract agree that it will not be legally enforceable until the happening of a certain event, that term of the contract is known as a:

• A)Condition precedent.
• B)Condition subsequent.
• C)Qualified term.
• D)Prior term.

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Definitions:

Activity Driver

An activity driver is a factor in activity-based costing that influences the costs of an activity, helping allocate costs more accurately to products or services.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, promoting more accurate cost management.

Non-volume Driven

Pertains to costs that do not change with the level of production or service volume.

Product Costing System

An accounting methodology used to ascertain the total production cost of a product, by adding together the costs of direct materials, direct labor, and manufacturing overheads.