Which of the Following Is TRUE Regarding Bailments

question 5

Multiple Choice

Which of the following is TRUE regarding bailments?

• A)A change of ownership does not occur; the bailee is only putting his or her property in the bailor's custody.
• B)The courts want to keep contracts alive,so they will often rescind a bailment.
• C)Under a bailment arrangement,there can arise a time when the possessor can sell the goods against the owner's wishes.
• D)If Sally were suing her dry cleaners for the loss of her coat,Sally must prove that the dry cleaners were negligent.
• E)John put his house under the care of a neighbour until he returns from vacation.For John to take custody of it again is an example of a bailment.

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Definitions:

Fixed Component

A cost that does not change with the increase or decrease in the amount of goods or services produced or sold.

Predetermined Overhead Rate

An established rate used to apply manufacturing overhead costs to products, calculated in advance based on expected costs and activity levels.

Labor-Hour

A measure of work effort quantified in hours, commonly used to allocate costs or measure productivity in various contexts.

Fixed Overhead Volume Variance

A financial metric indicating the difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate per unit.