"Caveat Emptor" Is a Term Commonly Used in the Personal

question 109

Multiple Choice

"Caveat Emptor" is a term commonly used in the personal sales world.The term is usually associated with which level of organizational responsibilities?

• A)Economic Responsibility.
• B)Legal Responsibility.
• C)Ethical Responsibility.
• D)Discretionary Responsibility.
• E)Social Responsibility.

---

Definitions:

Direct Materials

Substances that can be directly linked to the manufacturing of a particular item.

Direct Labor

Labor costs that can be easily traced to individual units of product; essentially the wages paid to workers who directly manufacture goods.

Manufacturing Overhead

All indirect manufacturing costs, including but not limited to utilities, rent, and salaries of supervisors.

Direct Materials Cost

The expense incurred for raw materials that are directly traceable to the production of specific goods or services.