A Partnership Is Based on A(n)__________ Contract Between Two or More

question 115

Multiple Choice

A partnership is based on a(n) __________ contract between two or more competent persons who agree to place some or all of their money or other assets, labor, and skill in a business, with the understanding that profits and losses will be proportionately shared.

• A) involuntary
• B) voluntary
• C) notarized
• D) mandated

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Definitions:

Direct Material Standards

The predetermined cost and quantity of raw materials that should be used in the production of a single unit of product under normal operating conditions.

Actual Production

The real quantity of goods or services produced over a specified period, as opposed to planned or expected production levels.

Direct Material Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.

Cost Standards

The benchmarks or norms established for the cost of materials, labor, and overhead that are used in measuring and controlling performance.