Tim Has Been Approached by Kent Regarding the Payment of Tim's

question 23

Multiple Choice

Tim has been approached by Kent regarding the payment of Tim's credit card bill. Kent says he is acting on behalf of the bank to get assurance that Tim will pay the bill within a specific period of time. Kent is an outside agent who is not an employee of the bank. Which of the following legislations has the bank violated by contracting Kent to contact Tim?

• A) Fair Credit Reporting Act
• B) Fair and Accurate Credit Transactions Act
• C) Fair Credit and Charge Card Disclosure Act
• D) Fair Debt Collection Practices Act

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Definitions:

Indirect Labor

Costs associated with employees who assist in the production process but do not directly work on products, such as supervisors and maintenance staff.

Direct Materials Used

The raw materials directly used in the production of goods, traceable to the end product.

Direct Labor

Labor provided by employees who are directly involved in the production of goods or the delivery of services, forming an essential part of the production process.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and salaries not directly tied to specific units.