In Practice, the "Freedom of Contract" Principle Meant That __________________

question 52

Multiple Choice

In practice, the "freedom of contract" principle meant that __________________.

• A) employers increased workers' wages as the cost of living increased
• B) employers could set pay as low as workers would accept
• C) wages automatically increased as profits increased
• D) employers recognized the right of workers to bargain collectively

---

Definitions:

Standard Price

The anticipated or predetermined cost of a product, often used as a reference for evaluating actual costs.

Gallons

A unit of measurement for volume, commonly used to measure liquids.

Direct Labor Price Variance

A measure used in managerial accounting to calculate the difference between the actual cost of direct labor and the expected (or standard) cost, affecting the overall cost of production.

Standard Rate

The predetermined cost or price utilized in budgeting and costing exercises, aimed at simplifying accounting practices or performance evaluations.