Which of the Following Entries Reflects the Original Cost Assignment

question 62

Multiple Choice

Which of the following entries reflects the original cost assignment to spoiled units before considering rework cost?

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Definitions:

Assumed Risk

A principle that a person may voluntarily undertake or accept a risk inherent to an activity, thus absolving others from liability for any injury resulting from that risk.

Last Clear Chance

is a doctrine in tort law that allows a plaintiff to recover damages despite proof of contributory negligence if the defendant had the last opportunity to avoid the accident.

Intervening Cause

A legal term for an event that occurs after a party's initial act of negligence and contributes to a harmful event without breaking the causal link between the negligent act and the harm.

Reasonable Person Standard

A legal standard used to determine how an average person with ordinary prudence would act in certain circumstances.