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A competence bonus is a type of bonus. It can apply to most anything, but most frequently applies to skills.
A competence bonus (or penalty) affects a character's performance of a particular task, as in the case of the bardic ability to inspire competence.
Such a bonus may apply on attack rolls, saving throws, skill checks, caster level checks, or any other checks to which a bonus relating to level or skill ranks would normally apply. Multiple competence bonuses don't stack, only the highest bonus applies.