Compensatory Damages

question 53

Multiple Choice

Compensatory damages:

• A) compensate consumers for their actual loss.
• B) are imposed to punish the defendant for wrongdoing.
• C) may be a percentage of the company's net worth.
• D) allow consumers to collect treble damages for a violation.

---

Definitions:

Cost Of Goods Sold

The immediate expenses related to the manufacturing of products a company sells, which encompass both materials and labor.

Three Inventory Accounts

Refers to the three main types of inventory accounts on the balance sheet: raw materials, work-in-progress, and finished goods.

Direct Materials

Raw materials directly used in the manufacturing of a product, directly traceable to the finished product.

Office Supplies

Items like pens, paper, calculators, and computers that are used on a daily basis within an office setting.