Which Statement Is Accurate in Its Description of Consumer Protection

question 49

Multiple Choice

Which statement is accurate in its description of consumer protection?

• A)The Consumer Product Safety Commission has the power to order recalls.
• B)Statistics show that,in fact,safety regulations rarely succeed in increasing safety.
• C)Critics agree that the cost of safety regulations and product recalls are negligible.
• D)Safety regulations permit people to choose to save money by purchasing riskier (but less expensive) products.

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Definitions:

Equity Method

The equity method is an accounting technique used to assess the investments in other companies, where the investment is recorded at original cost and adjusted according to the investor’s share of the investee's profit or loss.

Intra-entity Inventory

Transactions involving the exchange of goods between divisions within the same company, often for consolidation or reallocation purposes.

Gross Profit

The disparity between sales income and the expense of goods sold, prior to considering additional expenditures.

Gross Profit

The financial gain obtained after deducting the cost of goods sold from total sales revenue.