If One or Both Parties to a Form Contract Are

question 10

Multiple Choice

If one or both parties to a form contract are nonmerchants,the additional terms proposed by one of the parties are treated as:

• A) void.
• B) proposals for addition to the contract.
• C) revocation.
• D) expressly conditional.

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Definitions:

Actual Fixed Overhead Costs

The real costs incurred for fixed overhead during a specified accounting period.

Budgeted Activity

The planned level of output or activity for a specific period, used for planning and control purposes.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected wage, multiplied by the actual hours worked.

Labor Efficiency Variance

The difference between the actual labor hours taken to produce a good or service and the standard labor hours expected, multiplied by the labor rate.