Which of the Following Is True Regarding Brendan's Statement That

question 10

Multiple Choice

Which of the following is true regarding Brendan's statement that he did not have to pay the emergency room charges?

• A)He is incorrect because there was a bilateral,express contract.
• B)He is partially correct in that because a quasi-contract existed,he would have to pay;but he would only have to pay fair market value,not what the hospital requested.
• C)He is correct.
• D)He is incorrect because there was a binding implied contract.
• E)He is incorrect because there was a unilateral,express contract.

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Definitions:

Standard Labor Rate

A predetermined cost per labor hour, used in budgeting and cost control for planning and evaluating labor expenses.

Actual Hours Incurred

The real number of hours worked or used in the completion of a task or production of a good, as opposed to the estimated hours.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost multiplied by the quantity of materials used.

Standard Costing System

A cost accounting system that uses standard costs for product costs and measures variances to actual costs for performance evaluation.