Mark Walton Was Involved in a Car Accident in Which

question 69

Multiple Choice

Mark Walton was involved in a car accident in which the airbag of his car failed to deploy. He sued the car manufacturer for installing faulty airbags. But in the course of the case being heard in court, the car company and Mark decided to settle the lawsuit out of court. What important function of the law was served in this case?

• A) promoting social justice
• B) maximizing individual freedom
• C) providing a basis for compromise
• D) maintaining the status quo

---

Definitions:

January

The first month of the year in the Gregorian calendar.

Conversion Costs

The total expenses of direct labor and manufacturing overhead that are necessary to transform raw materials into completed goods.

Equivalent Units

A concept used in cost accounting to express the amount of materials, labor, and overhead a company has applied to produce partially completed goods in terms of fully completed units.

Work In Process

Inventory that includes materials that have been partially processed but are not yet completed products.