Which of the Following Would Constitute Negligent Entrustment of a Rental

question 4

Multiple Choice

Which of the following would constitute negligent entrustment of a rental car by a car rental company?

• A) Renting to someone under age 21
• B) Renting to someone who is visibly intoxicated
• C) Renting to someone without proper identification
• D) Renting to someone accompanied by three friends, all of whom would be passengers in the car

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Definitions:

Standard Rate

A predetermined cost or price that is used for calculating variances, budgeting, or setting product prices.

Variable Overhead

The portion of overhead costs that varies directly with production volume.

Variable Overhead Rate Variance

The variance between the expected variable overhead according to standard cost and the actual variable overhead costs incurred.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs and the standard cost of variable overheads for the actual production units.