Which of the Following Would Not Generally Be Considered to Be

question 23

Multiple Choice

Which of the following would not generally be considered to be a benefit of evidencing a contract in writing and having it signed by the parties?

• A)To encourage deliberation and reflection and to emphasise that the transaction has significant legal consequences
• B)To ensure the availability of reliable evidence about the terms of and existence of the contract
• C)To encourage the use of formal legal language in order to preserve the sanctity of the law
• D)To indicate that the agreement was intended to be legally enforceable

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Definitions:

Indirect Labor

Workers or labor costs that support the production process but are not directly involved in the creation of the product.

Supplies

Items or materials used in the production process or in the operation of a business.

Fixed Overhead Volume

refers to the portion of fixed overhead costs that is associated with the production volume, used in calculating efficiency and profitability.

Standard Machine-Hours

A measure used in manufacturing to allocate costs to products based on the estimated number of hours the machinery is used.