Jean Is Playing a Computer Game on a Bad Disk

question 32

Multiple Choice

Jean is playing a computer game on a bad disk that melts in her drive,starting a fire that injures her hands.Jean files a suit against K-Tech,Inc.,the game's manufacturer.K-Tech is held liable under the doctrine of strict liability.A significant application of this doctrine is in the area of

• A)cyber torts.
• B)intentional torts.
• C)product liability.
• D)unintentional torts.

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Definitions:

Machine-Hours

A measure of production time, quantified in hours, that machinery is operating to perform work.

Machining Department

A specialized division within a manufacturing operation that performs machining processes, such as cutting, shaping, or drilling materials.

Finishing Department

The last department in a manufacturing process where products are completed and made ready for sale.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products, calculated before the accounting period begins.