Franco Has the Permission of George to Walk Across His

question 61

Multiple Choice

Franco has the permission of George to walk across his yard on the way to school. Franco now brings twenty of his friends across the yard, and they stop to play ball. In this case:

• A) Franco is not guilty of trespass to real property, because he had George's permission to cross the yard.
• B) Franco's friends are not guilty of trespass to real property, because they were with Franco.
• C) Franco is guilty of trespass to real property, because he walked across the yard.
• D) Franco and his friends are guilty of trespass to real property, because they played ball in George's yard.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in product costs and treats fixed production costs as period costs.

Reconciliation Method

A process used to ensure that two sets of records or balances are in agreement, often used in accounting to compare transactions and balances.

Contribution Format

An income statement format that separates fixed costs from variable costs to highlight the contribution margin of a company.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overheads) in the price of a product.