If the Ford Focus Is the Cost Object, Classify Each

question 125

Multiple Choice

If the Ford Focus is the cost object, classify each of the following costs as indirect or direct, respectively: property taxes for the manufacturing plant, engines for the cars, and janitor wages for the factory.

• A)indirect, direct, and indirect
• B)all are indirect
• C)all are direct
• D)indirect, direct, and direct

Apply the theory of product liability and understand the conditions under which a party can be held liable.

Understand the legal frameworks surrounding negligence, strict liability, and warranty disclaimers in product liability cases.

Recognize the implications of the Restatement (Third) of Torts in product liability litigation.

Comprehend the significance of damage types and limitations in tort and contract law.

---

Definitions:

Net Operating Income

The profit a company makes after deducting operating expenses from gross profit, not including income and expenses from investments and interest.

Variable Costing

An accounting method that only considers variable costs in determining the cost of products.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product costs, excluding fixed costs.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and a portion of all overhead costs.