Which of the Following References the Requirement That a Contract

question 73

Multiple Choice

Which of the following references the requirement that a contract not be either illegal or against public policy?

• A) Consideration
• B) Capacity
• C) Legal object
• D) Illegal prohibition
• E) Ethical requirement

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Definitions:

Direct Labor Budget

A projection of the total costs associated with the direct labor needed for a specific period, based on projected levels of production or services.

Direct Labor-Hour

Direct labor-hour refers to the amount of labor time spent by workers directly manufacturing a product or delivering a service, used as a basis for allocating overhead costs.

Labor Rate

The amount paid per hour of labor, including wages and sometimes additional benefits, for direct and indirect labor.

Direct Materials Purchase Budget

A financial plan that estimates the raw materials required for production and their associated costs, aiding in financial and operational planning.