Field Construction, Inc

question 55

Multiple Choice

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

• A) ​capability.
• B) ​legality.
• C) ​necessity.
• D) ​marketability.

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Definitions:

Accounts Receivable

Financial obligations customers have towards a business for received goods or services that remain unpaid.

Factory Overhead

Refers to the indirect costs associated with manufacturing, including costs for utilities, rent, and maintenance of equipment not directly tied to the production of goods.

Labor Costs

The total sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer.

Production Orders

Instructions or commands to start the manufacturing process of goods, often specifying amounts and types of products.