Soda Bubbles Corporation Makes Soft Drinks

question 69

Multiple Choice

Soda Bubbles Corporation makes soft drinks. Toby drinks a Soda beverage, which proves defective and injures him. One justification for holding Soda strictly liable for the harm caused to Toby is that

• A)Soda is in a better position than Toby to bear the cost of her injury.
• B)Toby is a consumer, not a corporation.
• C)making products is an abnormally dangerous activity.
• D)Soda and Toby are in privity.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead costs.

Segmented Income Statement

A financial statement that breaks down income, expenses, and profit margins by specific segments, such as products, services, or geographical regions, within a company.

Contribution Format

A style of income statement presentation that separates fixed costs from variable costs, highlighting the contribution margin.

Retail Segment

Refers to a portion of the market that deals with the sale of goods or services directly to end consumers for personal, non-business use.