An Intended Third Party Beneficiary Can Sue a Promisor Directly

question 5

True/False

An intended third party beneficiary can sue a promisor directly for breach of contract.

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Definitions:

First-in, First-out Method

An inventory valuation method assuming that the first goods purchased are the first goods sold, usually used to calculate cost of goods sold.

Conversion Costs

The total cost of converting raw materials into finished goods, including both direct labor and manufacturing overhead.

Work in Process

Inventory that is in the production process and is not yet completed.

Equivalent Units

Equivalent units are a concept used in cost accounting to express the amount of work done on partially finished goods in terms of fully completed units.