Which of the Following Scenarios Would Most Likely Result in Strict

question 78

Multiple Choice

Which of the following scenarios would most likely result in strict liability?

• A) Bruno owns a basset hound that escapes from his yard and bites a neighbor.
• B) Amos buys a bag of Chips Ahoy chocolate-chip cookies and breaks a tooth when he bites into one that contains a small rock that looks like a chip.
• C) Ted is injured at a major-league baseball game when a foul ball enters the stands and hits him.
• D) Maintenance at a school waxes the floors during class but fails to put up warning signs. A student leaving class slips and is injured.

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Definitions:

Accounting Period

A specific and standard duration of time (such as a month, quarter, or year) during which accounting records are kept and financial statements are prepared.

Immaterial Variances

Small or insignificant differences between budgeted and actual figures that are not considered important enough to analyze in detail.

Fixed Overhead Variance

The difference between actual fixed overhead costs and the expected (or budgeted) fixed overhead costs.

Volume Variance

A financial term that represents the difference between the expected (budgeted) volume of production or sales and the actual volume achieved.