With Regard to #110, Suppose That Jill Had Been Using

question 40

Multiple Choice

With regard to #110, suppose that Jill had been using the skates for one year when the wheel fell off. Which of the following best summarizes the manufacturer's liability?

• A) There is no liability because of assumption of risk.
• B) There is no liability because the skates are one-year old.
• C) There could be liability if the wheel fell off due to defective design and there is no change in the design over the course of the last year.
• D) There is no liability because manufacturers are excused from liability when there is passage of this much time.
• E) none of the above

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Definitions:

Materials

Substances or components required in the production of goods or in the provision of services.

Weighted-Average Method

An inventory costing method that calculates the cost of goods based on the average cost of all similar items in inventory.

Processing Cost

The expenses related to the production or manufacturing of goods, including labor, materials, and overhead costs.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on unfinished products in terms of fully completed units.