A Durable Power of Attorney Differs from a Power of Attorney

question 35

Multiple Choice

A durable power of attorney differs from a power of attorney in that the durable power of attorney:

• A) is a formal written instrument, whereas the power of attorney may be informal and oral.
• B) must follow a standardized form set forth in the federal Uniform Durable Power of Attorney Act.
• C) becomes effective upon the principal's subsequent incapacity or the agent's authority is not affected by the principal's subsequent incapacity.
• D) is governed by Article 3 of the UCC.

---

Definitions:

Product Cost

The total expenditure incurred to manufacture a product or offer a service, including materials, labor, and overhead costs.

Conversion Cost

The total cost of converting raw materials into finished products, typically including labor and overhead expenses.

Direct Materials

Raw materials that can be directly traced to the production process of a specific good or service.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to a specific product, such as utilities, rent, and management salaries.