Consideration Is Defined as Something of Value or Something Bargained

question 493

Multiple Choice

Consideration is defined as something of value or something bargained for in exchange for a promise. Normally, if consideration is absent:

• A) only the offeree may enforce the promise
• B) only the offeror may enforce the promise
• C) either party may enforce the promise
• D) the value of the exchange fails to meet the "market value" test
• E) none of the other choices

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead based on the actual production level.

Indirect Labor

Labor costs associated with tasks that do not directly contribute to the production of a specific product, such as maintenance or supervision.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the expected costs based on standard rates and actual production levels.

Direct Labor-hours

The grand total of working hours by employees who directly contribute to the manufacturing pipeline.