Which of the Following Is Not a Common Application Base

question 30

Multiple Choice

Which of the following is not a common application base for calculating the predetermined overhead rate?

• A)Administrative costs
• B)Direct labor hours
• C)Machine hours
• D)Direct labor costs

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Definitions:

Insurance Contract

A legally binding agreement between an insurer and an insured, in which the insurer agrees to compensate for specific losses in exchange for a premium.

Breach of Contract

occurs when a party fails to fulfill their obligations under a contract, either by not performing as promised, by interfering with another party's performance, or by repudiating the contract altogether.

Incontestability Clause

A provision in insurance policies that prevents the insurer from disputing the policy's validity after it has been in force for a specific period, usually two years, except under certain circumstances.

Material Misrepresentation

A false statement of a substantial fact that induces someone to enter into a contract or transaction.