Vicky Contracts with Rashad for the Delivery of Hospice Services

question 25

Multiple Choice

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund.This is

• A)a delegation.
• B)an assignment.
• C)a third party beneficiary contract.
• D)an alienation.

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Definitions:

Direct Labor Hour

Direct labor hour refers to the time spent by workers directly involved in the production of goods or services.

Overhead Applied

A portion of overhead costs assigned to a particular cost object based on a predetermined rate.

Direct Labor Efficiency Variance

The difference between the budgeted amount of direct labor required to produce an output and the actual direct labor used.

Favorable

A term used in budgeting and finance to indicate results that are better than expected, such as lower costs or higher revenues.