Oscar Is Speeding and Driving Inattentively When He Runs into Felix

question 39

Multiple Choice

Oscar is speeding and driving inattentively when he runs into Felix who is driving very cautiously.As a result of the accident,Felix's car needs $2,500 worth of repairs and Felix loses a weeks salary because he had to take off from work to recover from injuries sustained during the crash.

• A) both the repairs and the lost wages are compensatory damages
• B) the repairs are compensatory damages and the lost wages are consequential damages
• C) the repairs are consequential damages and the lost wages are compensatory damages
• D) both the repairs and the lost wages are consequential damages

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Definitions:

Process Costing

A costing method that assigns manufacturing costs to units of product, used when nearly identical products are mass-produced.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all inventory items.

Process Costing

A costing method used where homogeneous products are produced on a continuous basis, costs are averaged over the units produced during the period.

Weighted-Average Method

An inventory valuation method that averages the cost of all similar items in inventory, used to determine the cost of goods sold and ending inventory.