Lau Enters into a Contract to Mow Macy's Yard Every

question 34

Multiple Choice

Lau enters into a contract to mow Macy's yard every week for the summer. Macy sells her house and yard to Nona, and assigns the right to receive Lau's services to Nora. Macy is

• A)the obligor.
• B)a third party beneficiary.
• C)the assignee.
• D)the assignor.

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Definitions:

Direct Labour-hours

Direct labour-hours refer to the amount of time spent by workers directly involved in the production process, used to allocate labour costs to units of output.

Machine-hours

A measure of production output or activity based on the number of hours machines are operating.

Product Diversity

The range and variety of products a company offers.

Parts Administration

Refers to the management and oversight of parts inventory, including ordering, stocking, and distributing components used in production or repair.