Jacob Writes Phillip an Uncertified Check for $500 on January

question 42

Multiple Choice

Jacob writes Phillip an uncertified check for $500 on January 1.Seven months later,Phillip presents the check at the bank.The bank pays the check in good faith without consulting Jacob.The bank

• A)does not have the right to charge Jacob's account for $500.
• B)only has the right to charge Jacob's account for $250.
• C)has the right to charge Jacob's account for $500.
• D)can be held liable for breach of contract.

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Definitions:

Normal Cost System

An accounting system that applies indirect costs to products based on a standard cost rather than actual cost measures.

Cost Flow

The movement and allocation of costs through various stages of production or services, tracking how costs are assigned to products or services.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks for measuring performance.

Controlling Costs

The process of planning, monitoring, and managing expenses to operate within a budget.