Research Data Corporation Sells Access to Its Database of Scientific

question 36

Multiple Choice

Research Data Corporation sells access to its database of scientific research to users for a certain price per month. Research Data files a suit against its user Tom when, in violation of their contract, he stops making payments. Tom claims that the deal is unconscionable. The court will most likely consider​

• A) ​the geographic area of the relevant market.
• B) ​the parties' relative bargaining power.
• C) ​the quality of related services in the general market.
• D) ​the relation of this deal to those of other users.

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Definitions:

Direct Labor Rate

The average cost paid per hour of direct labor, typically used in calculating the direct labor costs of producing goods or services.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to more accurately reflect the resources consumed.

Direct Labor-Hours

The total number of hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating labor costs to products.

Direct Materials Cost

The cost of raw materials used in manufacturing that can be directly traced to the finished product.