After a Breach of Contract by a Buyer, Expenses Associated

question 79

Multiple Choice

After a breach of contract by a buyer, expenses associated with stopping delivery, transporting and taking care of the goods after the breach, returning or reselling the goods are all examples of:

• A) incidental damages
• B) explicit damages
• C) punitive damages
• D) cost damages
• E) breach damages

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Definitions:

Direct Materials

Raw materials that are directly attributable and allocable to a finished product in the manufacturing process.

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Variable Overhead

Costs that fluctuate with changes in production volume, such as utilities and materials, affecting the cost to produce goods or services.

Direct Materials

The raw materials that are directly traceable to the production of a specific product and constitute a significant portion of the product's direct costs.