If a Contract Does Not Require That Performance Be Rendered

question 38

True/False

If a contract does not require that performance be rendered directly to a third party,the third party is an intended beneficiary.

---

Definitions:

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Manufacturing Overhead Account

An account that accumulates all indirect costs associated with the production process, excluding direct materials and direct labor costs.

Work in Process

Inventory that includes materials that have been partially processed but are not yet complete finished goods in a manufacturing setting.

Machine-Hours

A measurement of the time a machine is operated, used in costing to allocate expenses based on machine use.