In a Case Based on Diversity of Citizenship, a Federal

question 72

Multiple Choice

In a case based on diversity of citizenship, a federal court will apply _____law.

• A) state
• B) federal
• C) common
• D) appellate

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Definitions:

Direct Labor Costs

Expenses related to labor that is directly involved in the production of goods or the provision of services.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to products, calculated before the accounting period starts.

Standard Cost Variances

Differences between the estimated costs to produce a good or service and the actual costs incurred.

Cost of Goods Sold

The direct costs associated with producing goods that have been sold, including materials and labor.