Professionals Who Fail to Exercise Normal Care and Skill in the Performance

question 13

Multiple Choice

Professionals who fail to exercise normal care and skill in the performance of a contract for their services may be sued for a special type of breach described as:

• A) sub par performance.
• B) illegal practice.
• C) malpractice.
• D) competence reservation.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs and the standard variable overhead costs allocated based on a predetermined rate.

Indirect Labor

The wages paid to employees who are not directly involved in producing goods but support those who are, such as maintenance workers and supervisors.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Variable Overhead Efficiency Variance

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