MsLam Bought a Lot Next to a House Owned by Mr.Dodson.She

question 121

Multiple Choice

Ms.Lam bought a lot next to a house owned by Mr.Dodson.She asked Mr.Dodson for permission to use his electricity while building a house on her property.He refused.He feared his house was too old to handle the electricity load needed.Later,a carpenter employed by Ms.Lam accidentally broke a window of Mr.Dodson's while moving lumber.Furthermore,the carpenter removed part of Dodson's fence to make room for needed materials,used Dodson's house to support the lumber and drove some nails into Dodson's tree to hold some wires.Dodson complained to Ms.Lam.Irritated by his stand on the electricity and his complaints,Lam began a civil action against him for the tort of defamation,although she had absolutely no grounds for alleging defamation.Which of the following is not supported by the facts given above?

• A) Dodson has an action against the carpenter for trespass.
• B) Dodson has an action against Lam on the principle of vicarious liability.
• C) Dodson has an action against Lam on the grounds of strict liability (the rule of Rylands v. Fletcher).
• D) Dodson has an action against the carpenter for negligence.
• E) Dodson could sue Lam for trespass even if there was no damage.

Understand cost behavior and how changes in production levels affect costs.

Calculate the total and per unit costs under different production levels.

Understand the concepts of manufacturing overheads, conversion costs, and how they relate to product costing.

Analyze the impact of sales volume changes on costs and profitability.

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Definitions:

Federal Statutes

Laws enacted by the federal government of a country.

Proprietorship

A business structure owned by a single individual, where the owner is entitled to all profits and responsible for all debts and liabilities.

Business Entity Assumption

An accounting principle that treats a business as an entity separate from its owners, meaning its financial transactions are recorded distinctly from those of its owners or other businesses.

Economic Unit

An entity, such as an individual, household, or organization, considered in economic analysis and decision-making.