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Ocala Corp Operated a Factory That Caused Corrosive Particles to Drift

question 15

True/False

Ocala Corp operated a factory that caused corrosive particles to drift in the air and land on a building that was owned by Broderick Inc.Those particles damaged the roof of the building.The damage could have been repaired immediately at a cost of $250 000,but Broderick did not have the money necessary to do so.It therefore sued Ocala in negligence.By the time the trial ended several years later,inflation had run rampant and the cost of repairing Broderick's roof has increased to $900 000.Because of the modern approach to the "thin wallet" rule,Ocala cannot possibly be held liable for more than $250 000.

Understand the role of materials requisitions in the production process and how materials are accounted for in manufacturing.

Recognize the significance of job costing, including the calculation of gross profit, sales, and the status of finished goods, work in process, and cost of goods sold for specific jobs.

Comprehend the utilization of a predetermined overhead rate in applying factory overhead and its calculation based on budgeted figures.

Understand different cost accumulation systems and their applications.

Definitions:

Coinsurance Co-payment Amount

The fixed percentage or amount that an insured person is responsible for paying for medical services, after the deductible is met.

CMS-1500 Form

The standard claim form designed by the Centers for Medicare and Medicaid Services to submit physician services for third-party (insurance companies) payment; the standard paper claim form to bill Medicare Fee-For-Service (FFS) Contractors when a paper claim is allowed.

Medicaid

A program financed by the government in the United States offering health insurance to qualified adults with low income, kids, expectant mothers, senior citizens, and individuals with disabilities.

Federal Tax ID

A unique identification number assigned to a business or entity by the IRS for tax purposes, also known as an Employer Identification Number (EIN).