Consideration in a Small or Minimal Amount That Is Written

question 24

Short Answer

Consideration in a small or minimal amount that is written into a contract but never actually paid is called ________ consideration.

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Definitions:

Direct Labor-Hours

The total number of hours worked directly on the production of goods, used as a basis for allocating overhead costs in some accounting systems.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping to record debits on the left side and credits on the right.

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to the units produced, based on a predetermined rate.

Manufacturing Overhead

Every cost linked to production that isn't categorized as direct material or direct labor expenses.