Consequential Damages May Be Recovered If

question 27

Multiple Choice

Consequential damages may be recovered if:

• A) the damages were not a foreseeable consequence of the breach.
• B) the damages reasonably flow from the breach as a result of the injured party's particular circumstances.
• C) the breach did not cause the damages.
• D) the loss exceeds $500.

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Definitions:

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product, used in job costing and determining labor costs.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant regardless of the level of production or sales volume.

Manufacturing Overhead Budget

An estimation of all manufacturing costs, excluding direct materials and direct labor, planned for a specific period.

Direct Labor-Hours

The cumulative hours that employees engaged in the manufacturing process have completed.