A Builder Who Accidentally Builds a Defective House May Incur

question 40

Multiple Choice

A builder who accidentally builds a defective house may incur:

• A)criminal and contractual liability.
• B)criminal and tortious liability.
• C)tortious and contractual liability.
• D)tortious and occupier's liability.

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Definitions:

Product Costs

The total costs incurred to produce a product, including direct materials, direct labor, and manufacturing overhead.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources that go into producing them.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the manufacturing process.

Activity Rate

A measure used in activity-based costing to assign costs to activities based on their use of resources.