Over the Internet,Red & White Contractors,Inc

question 36

Multiple Choice

Over the Internet,Red & White Contractors,Inc.,arranges to lease storage space from Blue Services Company. To complete the deal,Red & White clicks on a but-ton that says,in reference to certain terms,"I agree." Most likely,the par-ties have

• A)a binding contract that includes the terms.
• B)a binding contract that does not include the terms.
• C)an unenforceable contract that includes the terms.
• D)an unenforceable contract that does not include the terms.

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Definitions:

Direct Labor-Hours

The total number of hours worked by employees directly involved in manufacturing goods or providing services.

Direct Materials Purchases Variance

A measure used in managerial accounting to compare the actual cost of direct materials to the expected cost.

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in manufacturing products or delivering services.

Labor Rate Variance

The variance between the real labor costs and the projected or normative labor costs.