There Are Two Situations in Which a Third Party Gains

question 87

True/False

There are two situations in which a third party gains rights to a contract: donee beneficiary and incidental beneficiary.

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Definitions:

Clock Card

A card used by employees when clocking in and out of the factory; it becomes the basis for the payroll.

Payroll

The total amount of wages, salaries, bonuses, and deductions paid to or on behalf of employees over a specific period.

Manufacturing Overhead-Control

An accounting method used to gather and monitor the costs associated with the manufacturing process but not directly tied to specific products, such as rent, utilities, and salaries.