A Commercial Airliner Has Crashed in the Middle of the Atlantic.The

question 33

Multiple Choice

A commercial airliner has crashed in the middle of the Atlantic.The cause of the crash has been proven to be a wrongly installed part in one of the engines during routine maintenance.If a negligence law suit is brought against the airlines,it will be based on:

• A) nonfeasance.
• B) misfeasance.
• C) res ipsa loquiter.
• D) negligence per se

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Definitions:

Fixed Overhead

The regular, recurring expenses that are not affected by the level of business activity, such as rent, salaries, and insurance.

Budget Variance

Budget Variance is the difference between what was budgeted or planned for a particular period and what was actually spent or received.

Variable Overhead

Costs that vary in direct proportion to changes in levels of production or activity, such as materials and labor.

Rate Variance

The difference between the actual rate paid for something and the expected or standard rate, often used in budgeting and accounting.