One of the Reasons Mentioned in the Text for the Growth

question 45

Multiple Choice

One of the reasons mentioned in the text for the growth of concern in product liability is that

• A) Canada has become a society, which is more interest group oriented, rather than litigation oriented.
• B) the number of cases of product-associated harm has greatly increased in recent years.
• C) the size of the individual financial awards in product-liability lawsuits has been directly tied to the number of such lawsuits.
• D) many otherwise noteworthy firms are declaring bankruptcy caused by skyrocketing liability insurance costs.

---

Definitions:

Weighted-Average Method

A cost accounting method that assigns an average cost to each unit of inventory by weighting the costs of similar items.

Work in Process Inventory

The cost of partially finished goods that are still in the production process at the end of an accounting period.

Units Completed

is a measure of the number of finished units produced within a given period, reflecting the productivity or output level.

Process Costing

An accounting methodology used in manufacturing where costs are assigned to processes or departments and then averaged over units produced.