Which of the Following Is an Exception to the Preexisting-Duty

question 42

Multiple Choice

Which of the following is an exception to the preexisting-duty rule?

• A)Foreseeable circumstances
• B)Contracts not covered by the Uniform Commercial Code (UCC)
• C)Service contracts
• D)Additional work
• E)Contracts that do not involve a sale of goods

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Definitions:

Direct Labor

The wages and benefits paid to employees who are directly involved in the production of goods or services.

Overhead Costs

Indirect costs or expenses related to the operation of a business that are not directly tied to a specific product or service, such as utilities, rent, and administrative expenses.

Work in Process

Work in process (WIP) refers to the materials and labor that are in the process of being manufactured but are not yet completed goods.

Selling Expenses

Costs incurred directly from the selling of goods or services, including advertising, sales commissions, and store displays.