A Bill of Material for an Item Must Change

question 17

Multiple Choice

A bill of material for an item must change:

• A) when a component changes
• B) when there is a change in the use of the item
• C) when the item is used in another parent
• D) never
• E) if the item is fully interchangeable

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Definitions:

Near Privity Rule

A legal concept that extends liability for breach of warranty to individuals who may not be in direct contractual relationship but are close enough to the transaction to be considered in "near privity."

Accounting Liability

Financial obligations or debts that a business entity is legally responsible for and are recorded on its balance sheet.

Reasonably Foreseeable Users

Reasonably foreseeable users are individuals or entities that could be expected to use or be affected by a product or information, based on its intended purpose.

Accountant Liability

The legal responsibility accountants have to their clients and third parties, regarding the accuracy of financial statements and audit reports.