The Concept of Reasonable Foreseeability Is Directly Relevant to

question 65

Multiple Choice

The concept of reasonable foreseeability is directly relevant to

• A)the duty of care and the standard of care but not remoteness.
• B)the standard of care but not the defence of contributory negligence.
• C)factual causation.
• D)the duty of care.
• E)both the but-for test and the concept of an intervening act.

Recognize the effects of inventory methods on income taxes.

Understand the components of the year-end inventory balance.

Grasp the impact of inventory estimation errors on financial statements and cash flow.

Understand the calculation and significance of inventory turnover.

---

Definitions:

Capacity

The maximum level of output that a company can sustain to produce in a given period.

Allocation Base

A criterion or measure used for distributing overhead costs among various cost objects, such as departments or products.

Fixed

Expenses that do not change in total over a short period, regardless of the level of production or sales activity, such as rent, salaries, or insurance.

Classified

Pertains to information, documents, or materials that have been deemed confidential and are restricted to certain levels of access.