If Parties to a Contract Agree That It Will Not

question 13

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:

Direct Material

The raw materials directly used in the manufacturing of a product, which are easily traceable to the finished product.

Direct Labor-Hours

Direct labor-hours are the total time workers spend creating a product or providing a service, directly correlated to the volume of production.

Variable Overhead

Indirect production costs that vary with the level of output, such as utilities or indirect materials used in the production process.

Direct Materials

The raw materials that are directly used in the manufacturing process of a product and are easily traceable to that product.