If XYZ Company Had $12 Million in Revenue and Net

question 32

Multiple Choice

If XYZ Company had $12 million in revenue and net income of $3 million,then its:

• A) expenses must have been $15 million.
• B) expenses must have been $9 million.
• C) assets must have been $12 million.
• D) assets must have been $3 million.

Assess the legal responsibilities of manufacturers regarding product safety and the potential consequences of product defects.

Examine the legal consequences of failing to address known product safety issues proactively.

Understand the principles of negligence, duty of care, and liability in professional services.

Analyze the impact of financial statements and assumptions on business transactions and legal liability.

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Definitions:

Activity-Based Costing

A cost accounting method that assigns overhead and indirect costs to specific activities and objects, improving the accuracy of product and service costing.

Batch Level Activity

Activities and costs associated with processing a batch of units, which occur each time a batch is handled or processed, regardless of the number of units in the batch.

Activity-Based Product Costing

A costing method that allocates overhead and indirect costs to products based on the activities required to produce them.

Product Line

A group of related products marketed by a company, often sharing a common theme, technology, or target market.