The _____ Clause in a Contract Provides Specific Details on How

question 34

Multiple Choice

The _____ clause in a contract provides specific details on how the supplier's performance will be measured and if any compensation will be awarded by the supplier to the buyer if these certain defined levels of performance are not maintained.

• A) key performance indicators and compensation
• B) liability
• C) notices
• D) third-party rights
• E) assignment and contracting

---

Definitions:

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the weighted average of the costs of similar goods available for sale during the period.

Equivalent Units

An idea in cost accounting that involves distributing costs to goods that are partially finished, transforming them into the equivalent number of completed goods units.

Conversion Costs

The combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.

Materials Costs

Expenses associated with the raw materials used in the manufacture of products.