Fred's Flooring (FF)contracts with Harry Homeowner to Install Wood Flooring

question 59

Multiple Choice

Fred's Flooring (FF) contracts with Harry homeowner to install wood flooring throughout Harry's home.Harry was to purchase the flooring and the contract was solely for installation.Payment was to be 20% at the time that the work commenced and 80% once the flooring was installed.Harry purchased the flooring materials and paid the 20%,so FF began work.When FF was half way completed,Harry realized that he didn't have the money to pay FF upon completion so he bolted the doors and refused access.If FF wants to rescind the contract and be paid for work completed,FF would sue for:

• A) compensatory damages.
• B) consequential damages.
• C) restitution.
• D) liquidated damages

---

Definitions:

Control Accounts

General ledger accounts that summarize the balances of a group of subsidiary accounts, facilitating the organization and verification of financial information.

Costing System

A method used by businesses to determine the cost associated with producing a product or offering a service, taking into account factors like materials, labor, and overhead.

Job Cost Sheet

A document used to record the costs associated with a specific job or project, tracking materials, labor, and overhead.

Unit Cost

The cost incurred to produce, store, or acquire one unit of a product or service.