The Benefit of Frustration Is Available in Which of the Following

question 42

Multiple Choice

The benefit of frustration is available in which of the following cases?

• A)Where one of the parties is subject to financial hardship which makes completion of the contract difficult.
• B)Where the cost of completing the contract becomes too high.
• C)Where it is inconvenient to complete the contract.
• D)Where an unforseen event outside the control of the parties significantly changes their obligations and neither party was at fault.

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them, providing more accurate product costing.

Manufacturing Overhead

Costs involved in the manufacturing process that cannot be directly linked to the production of a specific product, like maintenance and factory supervision.

Traditional Costing System

A costing methodology that assigns manufacturing overhead costs to products based on volume-related measures like labor hours or machine hours.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or providing service, used to allocate expenses in job costing.