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If there is a novation, the original promisor's liability to the original promisee is relieved, even if the new promisor fails to perform.
Standard Budgeted Rates
Predetermined costs used in budgeting and costing processes to standardize the allocation of expenses for labor, materials, and overhead.
Predetermined Overhead Rates
Rates established in advance to allocate overhead costs to products or job orders, based on estimated costs and activity levels.
Practical Capacity
The maximum amount of work that can realistically be achieved in a production process, accounting for unavoidable disruptions like maintenance and downtime.
Budgeted Capacity
The amount of production volume planned for a period, which is used for budgeting and planning purposes.
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