Many Courts Have Adopted a Test in Resolving the Proximate

question 17

Multiple Choice

Many courts have adopted a test in resolving the proximate cause question,under which a defendant who has breached a duty of care is liable:

• A)only for the "natural and probable consequences" of his actions.
• B)for all injuries sustained by the plaintiff.
• C)even for injuries caused by the plaintiff's negligence.
• D)for at least 50 percent of the damages.

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Definitions:

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities and resources required to produce them, aiming for more accurate cost allocation.

Direct Labor-Hours

The total hours of labor directly involved in manufacturing a product, which are often used to allocate manufacturing overhead costs to products.

Direct Materials Cost

The cost of raw materials and components that are directly used in the production of a product.

Activity-Based Costing

A method of accounting in which costs are assigned to products or services based on the resources they consume.