If the Parties to a Case Are from Different States

question 225

True/False

If the parties to a case are from different states, there is more than $75,000 in dispute, and state law is involved, the case may be heard in either federal or state court.

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Definitions:

Joint Products

Products that are generated together in a production process and cannot be produced independently of each other.

Net Realizable Value

The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions; the value of the receivables reduced to the amount that is expected to be collected or realized, computed as accounts receivable less allowance for doubtful accounts.

Cost Center

A department or function within a business that does not directly contribute to profit but incurs costs, used for performance evaluation and budgeting.

Physical Units Method

An approach to allocating joint costs based on the number of physical units produced at a certain stage in manufacturing.