Clint Contests the Amount of a Bill He Received from Car

question 47

Multiple Choice

Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim:

• A) is not valid consideration.
• B) is not a legal detriment to Clint if his contentions were not made in good faith.
• C) is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts.
• D) does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill.

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Definitions:

Activity Cost Pools

Groupings of individual costs, typically by department or activity, used in activity-based costing to allocate costs to products or services.

Time-Driven

A method or approach that relies on time as the main factor to drive processes, activities, or costing.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming to provide more accurate cost information.

Unused Capacity

Refers to the part of a company's production capability that is not currently being used for production. It indicates resources that are currently idle and not generating revenue.