Which One of the Following Assignments Would Probably Be Prohibited

question 13

Multiple Choice

Which one of the following assignments would probably be prohibited by a court?

• A)Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her creditor.
• B)John is a house painter. He is scheduled to paint Molly's home on Monday. John wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to begin the job at Molly's.
• C)Ron has a contract with Bonett Bank to service their coffee machines. He assigns the remainder of his contract with Bonett to Michelle, who also owns a coffee service.
• D)All of the above.

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Definitions:

Full Cost

The total cost of production that includes direct and indirect costs, such as raw materials, labor, and overhead expenses.

Mark-Up Percentage

A pricing strategy that sets the selling price of a product by adding a specific percentage to its cost price.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost, ensuring all costs are covered and a profit is guaranteed.

Absorption Cost

A method of product costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead.