For Five Years,Maxine Had Been Regularly Receiving the Same Bill

question 14

Multiple Choice

For five years,Maxine had been regularly receiving the same bill for $850 from Credit Landscaping.She didn't think she should pay it because they botched up the landscaping around her house.However,now,after these five years,she sends them a $425 cheque with a note saying,"Take this-it's all you're going to get." This move by Maxine will

• A)start the time all over again on the statue of limitations.
• B)get herself out of the liability.
• C)have no effect on the limitation time period.
• D)immediately give rise to a legal action.
• E)spur Credit Landscaping to turn the balance owed over to a collection agency.

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Definitions:

Equivalent Units

Equivalent units are a concept used in cost accounting to express the amount of work completed in terms of fully finished units, especially in processes involving partial completion of units.

Materials

Substances or components used in the manufacturing or production process, a broader term that may include raw materials and other inputs.

Weighted-average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Work in Process

Inventory that includes goods partially completed but not yet ready for sale, representing costs of direct labor, materials, and overhead.