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An owner ordinarily is not liable for harm caused a third person by the negligence of an employee of an independent contractor.
Unit Product Cost
The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.
Absorption Costing
An approach in financial accounting that wraps all expenses incurred in manufacturing including direct materials, direct labor, and all overhead (variable and fixed), into the product's cost.
Net Operating Income
The total revenue of a business minus its operating expenses, excluding taxes and interest.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, labor, and both variable and fixed overhead - in the cost of a product.
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