In the Beech-Nut Case, the Executives at the Time of the Sales

question 61

Multiple Choice

In the Beech-Nut case, the executives at the time of the sales of adulterated apple juice:

• A) Did not know that there was a problem with the apple juice.
• B) Took no steps to cover up the juice problem.
• C) Were charged with violations of criminal statutes.
• D) Cannot be held responsible unless they actually bought the adulterated product.
• E) None of the above

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Cost-volume-profit Analysis

An accounting technique used to determine how changes in costs, sales volume, and price affect a company's profit.

Cost-volume-profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.

Fixed Costs

Expenses that do not change significantly with the level of business activity, such as rent, salaries, and loan payments.