Why Is Past Consideration Not a Consideration in a Present

question 6

Multiple Choice

Why is past consideration not a consideration in a present promise?

• A) It falls under exceptions to consideration.
• B) It does not pertain to the present exchange.
• C) It is not covered under the UCC for consideration.
• D) It involves an issue of moral obligation.

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Definitions:

Standard Machine-Hours

A predetermined measure of the amount of machine time required to produce a unit of product under normal operating conditions.

Manufacturing Overhead

All indirect costs associated with the production process, including costs for utilities, depreciation of machinery, and factory staff salaries.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard labor rate.

Standard Hours

The estimated time that should be taken to complete a task or produce a unit under normal conditions.