Which of the Following Statements Is True When There Is

question 83

Multiple Choice

Which of the following statements is true when there is a defect in design of a product?

• A) There was a failure to provide adequate instruction on use of the product.
• B) There was a failure to warn customers about the possible dangers of using the product.
• C) A single item is defectively designed, and it has the potential to cause injury.
• D) All the products are defectively designed and have the potential to cause injury.

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Definitions:

Inventory Cost Methods

Inventory cost methods are accounting strategies for valuing inventory, such as FIFO (First In, First Out), LIFO (Last In, First Out), and average cost method.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Average Cost Formula

A method used in accounting to calculate the cost of sold goods or services by dividing the total cost of goods available for sale by the total number of items available.

Ending Inventory

The total value of all goods available for sale at the end of an accounting period, used in calculating the cost of goods sold and determining profitability.