If Mona Convinces the Judge That the Creditors Have Filed

question 4

Multiple Choice

If Mona convinces the judge that the creditors have filed the involuntary bankruptcy frivolously,which of the following is true regarding what amounts,if any,the court may force the creditors to pay?

• A) The court may award attorney costs, fees of the debtor, and punitive damages.
• B) The court may award attorney costs and fees of the debtor, but not punitive damages.
• C) The court may award fees of the debtor, but not attorney costs or punitive damages.
• D) The court may award punitive damages, but not attorney costs or fees of the debtor.
• E) The judge may dismiss the involuntary bankruptcy petition, but no other relief is available.

---

Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs related to maintenance, utilities, and equipment depreciation.

Direct Labor-Hours

A measure of the time workers or employees directly spend producing goods or performing services.

Predetermined Overhead Rate

Calculated before the period begins, this rate is used to assign overhead costs to products or job orders based on an activity base.

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as raw materials and direct labor.